Contagion
in sentence
364 examples of Contagion in a sentence
Greek politicians who still see the threat of financial
contagion
as their trump card should note the coincidence of the Greek election and the ECB’s bond-buying program and draw the obvious conclusion.
This instability has raised fears of emerging-market contagion, with South Africa especially susceptible, owing to its capital-account openness.
Finally, adverse
contagion
is extending beyond the 17 countries in the eurozone.
And it was German procrastination that aggravated the Greek crisis and caused the
contagion
that turned it into an existential crisis for Europe.
They built the first major public hospitals at a time when home births and other home care spread
contagion
and death.
And Spain is doing all it can to avoid the
contagion.
Now they are confronting elevated risks of a European recession and the real possibility that both the UK and the EU could break up if populist
contagion
takes hold.
Building an effective prevention and containment strategy – being bio-prepared – is the best way to reduce the threat of a global
contagion.
But the 2008 crisis exposed the dangers, with the globalized financial system’s intricate web of connections becoming a conduit for
contagion.
The funding from the parent banks that in the earlier phase of the crisis helped provide liquidity to the East European banking systems now appears more as a liability and possible source of
contagion.
The
contagion
could be stopped by a liquidity injection, but fear of encouraging deficit spending has impeded these efforts.
Once this
contagion
takes hold, there is no telling where it will stop.
Finally, the most dangerous consequence of Trump’s victory may be its
contagion
effect on Europe.
And now there are new risks emanating from worsening East-West relations, escalating sanctions on Russia, and possible
contagion
effects on other emerging-market countries.
A “speculative bubble,” I wrote then, is “a situation in which news of price increases spurs investor enthusiasm, which spreads by psychological
contagion
from person to person, in the process amplifying stories that might justify the price increase.”
Implicit in this definition is a suggestion about why it is so difficult for “smart money” to profit by betting against bubbles: the psychological
contagion
promotes a mindset that justifies the price increases, so that participation in the bubble might be called almost rational.
But public fear of bubbles may also enhance psychological contagion, fueling even more self-fulfilling prophecies.
We know from influenza that a new epidemic can suddenly appear just as an older one is fading, if a new form of the virus appears, or if some environmental factor increases the
contagion
rate.
Similarly, a new speculative bubble can appear anywhere if a new story about the economy appears, and if it has enough narrative strength to spark a new
contagion
of investor thinking.
International security depends on preserving diplomatic success stories such as the JCPOA, which are crucial to avoid
contagion
and to put an end, once and for all, to dangerous spirals of antagonism and polarization.
And a banking union, once completed, should contain the risk of financial crisis and
contagion.
The countries most at risk of
contagion
– Portugal, Spain, and Italy – are less vulnerable now in the eyes of the markets; the European Union has established a bailout fund; and the European Central Bank has launched a large bond-buying program.
Sovereign defaults, which may yet be the end-result of one country’s failure to reform, could be better facilitated, in terms of loss sharing and mitigating
contagion.
Will there be
contagion
to vulnerable countries in Europe and elsewhere?
One can only hope that political
contagion
from Italy does not further complicate these negotiations.
International equity markets have not been exempt from
contagion.
The most desirable outcome – rapid resolution that places the source of
contagion
on a sustainable growth path – appears improbable in Italy’s case.
But, though the Syriza party’s victory sent Greek equities and bonds plummeting, there is little sign of
contagion
to other distressed countries on the eurozone periphery.
This approach has several advantages: by leaving the face value of the debt unaltered, EU officials could argue that restructuring Greece’s debt did not amount to a default, thereby limiting
contagion.
Talk of “haircuts” for private investors immediately triggers concerns about
contagion.
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