Contagion
in sentence
364 examples of Contagion in a sentence
Moreover, the promised increase in IMF resources that would allow it to build a stronger firewall against financial
contagion
has still not arrived.
The one argument that seems – at least superficially – to put the public interest first is that an involuntary restructuring might lead to financial contagion, with large eurozone economies like Italy, Spain, and even France facing a sharp, and perhaps prohibitive, rise in borrowing costs.
But that begs the question: why should an involuntary restructuring lead to worse
contagion
than a voluntary restructuring of comparable depth?
The “acute” phase of the euro crisis is over; even if growth remains elusive, financial
contagion
is no longer viewed as a risk.
Despite the lack of significant financial
contagion
risk, a renewed Greek crisis, stemming from a lasting and serious breakdown of negotiations between the new government and EU institutions, would constitute a major problem for European cooperation.
The absence of financial
contagion
would not rule out serious political repercussions.
Walking away from Greece because it no longer poses a threat of financial
contagion
is not a politically viable option.
On the other hand, if the ECB preferred to let major countries, such as Italy, default on their debts, this would likely weaken the euro even further, as investors feared a
contagion
of defaults.
Contagion
is a well-understood process in finance.
This raises a fundamental question: can a firewall be built to prevent such political
contagion?
Two measures are generally used to stop financial crises and stem financial contagion: international rescue packages and financial reforms.
As countries reflect on these lessons, they could begin to form defensive regional blocs to protect themselves from the populist
contagion.
Bubbles without MarketsNEW HAVEN - A speculative bubble is a social epidemic whose
contagion
is mediated by price movements.
After the bubble bursts, the same
contagion
fuels a precipitous collapse, as falling prices cause more and more people to exit the market, and to magnify negative stories about the economy.
In a speculative bubble, the
contagion
is amplified by people’s reaction to price movements, but social epidemics do not need markets or prices to get public attention and spread quickly.
Ponzi schemes have managed to produce great profits for their promoters, at least for a while, by encouraging a social
contagion
of enthusiasm.
The Great Leap Forward, and the Cultural Revolution that followed it, was a calculated effort to create a social
contagion
of ideas.
Still, they do have aspects of bubbles: collectivization was indeed a plan for prosperity with a
contagion
of popular excitement, however misguided it looks in retrospect.
With the federal government raising roughly two-thirds of all tax revenues, there is no question about the Treasury’s ability to provide the financial backstop needed to prevent
contagion.
Millions of others may experience collateral damage, as financial
contagion
risks spreading to other European countries and to the global economy as a whole.
Europe’s fear of
contagion
is justified, because the Brexit referendum’s outcome has transformed the politics of EU fragmentation.
It took a long time, but the
contagion
of a sound financial idea has been unmistakable.
In Europe, this has led to several ratings downgrades of the sovereign debt of the most distressed countries, accompanied by bouts of
contagion
spilling over to the euro.
Such a plan would also clarify, once and for all, the size of the
contagion
to EU banks, which could ultimately be ring-fenced.
Greece has no good options, but a serious
contagion
risk remains to be contained in order to prevent derailment of the fiscal and growth-oriented reforms in Italy and Spain.
How all this plays out is important not only for Turkey, but also for other emerging economies that already have had to cope with waves of financial
contagion.
As is typically the case, the first wave of
contagion
was technical in nature, driven mainly by generalized outflows from Turkey’s currency and bond markets.
The longer this
contagion
continues, the greater the concern that it will lead to more disruptive financial and economic outcomes.
Perhaps swayed by promises of eurozone financial support (and Europe’s desire to prevent default-fueled financial
contagion
from spreading to countries like Spain and possibly Italy), the IMF took a rosier view of debt sustainability in countries like Greece than it has in emerging markets.
Otherwise, the dangers of unsustainable growth patterns will bring the party to an abrupt halt, potentially triggering financial
contagion.
Back
Next
Related words
Financial
Countries
Would
Other
Crisis
Spread
Markets
Could
Which
Global
There
Their
Social
Economic
Against
While
Prevent
Political
Risks
Economies