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INTERCONNECTEDNESS AND CONTAGION

Tuesday 20 November 2012 CCMR
The study engages in a detailed analysis of interconnectedness  in the context of the failure of Lehman Brothers and concludes that interconnectedness was not a major cause of the recent financial crisis.

The study comes to the conclusion that contagion was the primary cause of the financial crisis and that short-term funding in particular is the primary source of systemic instability.

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