con·ta·gion [kuhn-tey-juhn]: The likelihood of significant economic changes in one country spreading to other countries. This can refer to either economic booms or economic crises.
Example: An infamous example is the "Asian Contagion" that occurred in 1997 and started in Thailand. The economic crisis in Thailand spread to bordering southeast Asian countries and then eventually spilled over to Latin America.
As briefed in the Wall Street Journal today, this could also be a term used if subprime mortgage lending defaults result in a rise of the Japanese Yen and cause a continued unwinding of the "carry-trade" causing the liquidation of capital dispersed in world markets.
Contagion. And good day.
Z.
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1 comment:
I thought contagion was the likelihood of significant changes in my upper respiratory tract affecting the viability of the upper respiratory tracts of others.
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