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. © 2014 International Atlantic Economic Society.
Titolo: | Theory and Practice of Contagion in Monetary Unions: Domino Effects in EMU Mediterranean Countries |
Autori: | |
Data di pubblicazione: | 2014 |
Rivista: | |
Handle: | http://hdl.handle.net/11385/181647 |
Appare nelle tipologie: | 01.1 - Articolo su rivista (Article) |
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