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Contagion In Economics

Contagion In Economics

Contagion, in financial terms, refers to the diffusion of economic booms, and can occur both domestically and globally. It is basically a spread of an economic crisis from one region to another, and spreads on an international level due to the global market interdependence.

The term contagion was coined during the 1997 Asian financial crisis, but it was occurring namelessly even during the Great Depression in the 1930s.

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Developing Vs Established Markets

Developing countries and emerging markets are often more susceptible to be affected by a contagion, whereas large, established markets can weather them to a greater degree.

Periodic, global financial crises has been a staple of the economy for every decade since 1825, in one form or another.

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