Theory and Practice of Contagion in Monetary Unions: Domino Effects in EMU Mediterranean Countries | Zendy

Paolo Canofari | Zendy; Giovanni Di Bartolomeo | Zendy; Giovanni Piersanti | Zendy

AI Assistant Blog Pricing

Home ZAIA Blog

Open Access

Theory and Practice of Contagion in Monetary Unions: Domino Effects in EMU Mediterranean Countries

Author(s) -

Paolo Canofari,

Giovanni Di Bartolomeo,

Giovanni Piersanti

Publication year - 2014

Publication title -

international advances in economic research

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 0.155

H-Index - 25

eISSN - 1573-966X

pISSN - 1083-0898

DOI - 10.1007/s11294-014-9471-2

Subject(s) - economics , domino effect , european monetary union , mediterranean climate , domino , international economics , monetary economics , european union , monetary policy , geography , political science , biochemistry , chemistry , archaeology , catalysis , law

This paper analyzes strategic interactions and contagion effects in the peripheral countries of a monetary union. Using game theory and cost-benefit analysis, the paper determines the set of equilibrium solutions under which country-specific shocks are transmitted to other member countries giving rise to contagion. Numerical simulations, obtained by a simple calibration of the model on some key Mediterranean countries of the Euro Zone, show the probabilities of contagion from Greece, Spain and Italy.

The content you want is available to Zendy users.

Already have an account? Click here to sign in.

Having issues? You can contact us here

Accelerating Research