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contagion

contagion

4 7.8
The spread of financial problems from one market or country to others
  • noun
  • /kənˈteɪdʒən/
  • Specialized
translation icon : contagio financiero
  • In other words, contagion was as much in the mind of lenders and investors as in the markets themselves.
  • financial contagion
  • contagion effect
  • potential contagion

So consider that the small and medium bank contagion fears are real.

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Examples

  • If there is no deal, we could see renewed contagion," he said.

    Blog text (4)
  • Do this before Monday open or there will be contagion and the crisis will spread.

  • The third theory was one of contagion, and it's fascinating.

  • This idea about a Treasury contagion fund is what is being talked about.

  • So consider that the small and medium bank contagion fears are real.

  • Thanks to the deep integration of global banking, securities, and funding markets, the contagion quickly spread to major financial institutions around the world.

    Academic text (2018)
  • But fortunately there hasn't been much contagion to the real economy.

  • Higher leverage magnified banks' losses during the crisis, putting the largest banks at risk and increasing financial contagion.

    Academic text (2016)
  • Again, Buenos Aires quickly pulled together the kinds of measures that were necessary to fend off financial contagion and preserve dollar-peso parity.

    Academic text (2001)
  • The Asian financial crisis caused significant contagion in markets across the globe.

Synonyms

circulation
vscontagion
28 4.0

The spreading of news or money so more people get it

is about harmful market distress moving between institutions and countries
domino effect
vscontagion
9 4.0

A chain of events in which one event causes the next to happen

is about shocks spreading across markets or institutions rather than a simple cause chain
diffusion
vscontagion
5 5.8

Spreading ideas or customs to many places

is specific to financial distress spreading between markets and countries

Antonyms

363 3.1

Being steady and not likely to change

How Wide

contagion
  • Specialized
4 7.8
diffusion
5 5.8
spillover
  • Specialized
8 5.8
knock-on effect
  • UK
2 4.7
side effect
  • Specialized
259 3.3

Surface Forms

contagion singular
contagions plural

Morphology

contagion = contagious (semi-transparent) = contag + ion

The financial/economic sense extends the basic notion of spreading from one entity to others; the metaphor is consistent but the domain-specific meaning may be unfamiliar to learners.

Etymology

Contagion comes from the Latin parts con- 'together' and tangere 'to touch', like contact; in finance this helps: a problem can 'touch' one bank and then spread to others, so a spreading market crisis is called a 'contagion'.