Book Chapter Details
Mandatory Fields
Thomas J. Flavin and Dolores Lagoa-Varela
2020 February
Emerging Tools and Strategies for Financial Managment
Financial Contagion and Shock Transmission during the Global Financial Crisis: A review of the Literature
IGI Global
Hershey PA, USA
Optional Fields
After the recent financial crisis, the analysis of shock transmission across the financial system has received a great deal of attention. In particular, the role of financial contagion as a shock propagation mechanism has been studied in detail. The globalisation of financial and banking markets has increased the connections and relationship between them. Hence, recent crises have spread all around the world. The stability of linkages between financial assets across different market conditions cast doubt upon the benefits of portfolio diversification. This chapter reviews the extant literature on financial contagion during the global financial crisis and thus provides information for both portfolio managers (when optimizing their investment portfolios) and policymakers (when designing their strategies in order to mitigate spillover effects during crisis periods).
Begoña Álvarez-García and José-Pablo Abeal-Vázquez
Grant Details