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Contagion in sentence

364 examples of Contagion in a sentence

Rising spreads in Spain and Italy show that contagion is already occurring, even in the absence of an official decision to write down Greek debt.
While financial contagion today is limited to bank interaction, the EU’s measures have broadened the channels for contagion to include government budgets.
But if any troubled southern European economy fails to roll over its debt in the coming months, the resulting contagion will spread quickly from the eurozone throughout the global financial system, with consequences far more grave than what followed Lehman Brothers’ collapse in September 2008.
Only a solution that balances the two will guarantee the long-term growth of both peripheral and core eurozone economies, reassuring debt markets of their solvency and stemming the contagion that threatens to sweep the continent.
The problem is not another financial meltdown in an emerging market, with the predictable contagion that engulfs neighboring countries.
But any move of this kind would lead to a breakdown of the Greek banking system and, potentially, to massive contagion affecting Portugal, Spain, and Italy.
A default contagion would have brought down the banking systems of all the major industrial countries, and caused the world to relive something like the financial crisis of the Great Depression.
That exemption was created for Greece, because there was no “high probability” that Greek sovereign debt was sustainable, and the IMF’s European members worried that a Greek restructuring would spread financial contagion to other eurozone countries.
But none of this will avert the need for public bailouts when the next crisis hits, out of fear that financial contagion will amplify the initial market reaction.
On this view, significant and rapid reductions in government deficits and debt are a precondition to restoring government credibility and investor confidence, stemming contagion, bringing down interest rates, and reviving economic growth.
The Europeans did not like it much when Lagarde told them their banks needed to be restructured or that they needed to build a firewall to protect against financial contagion – but they did it.
That, in turn, would sharply contain the risk of financial contagion.
At the same time, the best way to contain financial contagion would be to implement a pan-European plan to recapitalize eurozone banks.
But more importantly, other debt-distressed countries – at least Ireland, Portugal, and Spain – would be vulnerable to financial contagion.
The taper tantrum of 2013 and the current travails of Argentina, Brazil, and other emerging economies underscore the contagion of cross-market spillovers arising from the ebb and flow of QE.
All of these phenomena form a part of the dark side of the globalized world: contamination, contagion, instability, interconnection, turbulence, shared fragility, universal effects, and overexposure.
And, of course, China’s outsize backstop of $3.8 trillion in foreign-exchange reserves provides ample insurance in the event of intensified financial contagion.
Fortunately, rising geopolitical risks – a Middle East on fire, the Russia-Ukraine conflict, Hong Kong’s turmoil, and China’s territorial disputes with its neighbors – together with geo-economic threats from, say, Ebola and global climate change, have not yet led to financial contagion.
The fiscal and monetary stimuli were important in themselves, but even more so because they indicated that the strength of government was going to be utilised to prevent contagion and further collapse.
But that luck is running out; at some point, an accidental or intentional launch will trigger global contagion.
We don’t know yet whether political contagion in the Middle East will spread to other countries.
In this combustible environment, policymakers are desperately using various vehicles – including the ECB, the International Monetary Fund, and the European Financial Stability Facility – in an attempt to stem the financial panic, contagion, and risk of recession.
The measures taken so far have opened channels of contagion from Europe’s crisis-ridden peripheral economies to the still-sound economies of Europe’s core, placing the latter’s taxpayers and pensioners at great financial risk, while hindering long-term recovery in the troubled countries themselves.
And countries like Ireland, Portugal, and Spain have, through hard and painful work, reduced their vulnerability to contagion from nearby crises.
This solution limits the risk of contagion and the potential losses that financial institutions would bear if the value of debt principal were reduced.
And the fourth may cause contagion effects via capital markets, possibly forcing policymakers to introduce capital controls, as in Cyprus in 2013.
Imagining a New Bretton WoodsAUSTIN, TEXAS – The financial meltdown of 2008 prompted calls for a global financial system that curtails trade imbalances, moderates speculative capital flows, and prevents systemic contagion.
Intra-day volatility rose in virtually every segment of global financial markets; adverse price contagion became more common as more vulnerable entities contaminated the stronger ones; and asset-market correlations were rendered less stable.
After all, participants in the housing and equity markets set prices with a view to prices in the bond market, so contagion from one long-term market to another seems like a real possibility.
The IMF’s concerns are valid, but the Fund’s idea is being resisted fiercely, owing to fears of political contagion: other debt-distressed eurozone countries might press for equal treatment.
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