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The Slow Spread Of The Global Crisis

Author

Listed:
  • PRISCILLA LIANG

    (Claremont Institute for Economic Policy Studies, USA;
    California State University, Channel Islands, USA)

  • THOMAS D. WILLETT

    (Claremont Institute for Economic Policy Studies, USA;
    Claremont Graduate University and Claremont McKenna College, USA)

  • NAN ZHANG

    (Claremont Institute for Economic Policy Studies, USA;
    Claremont Graduate University, USA)

Abstract

We argue that the depth and breadth of the spread of the current crisis from the US subprime market across the globe was due more to the buildup of substantial financial vulnerabilities prior to the crisis than to irrational panic during the crisis. We examine how these developments explain the belated recognition of the severity of the crisis and its slow spread through various channels of contagion. We also discuss lessons for policy and research.

Suggested Citation

  • Priscilla Liang & Thomas D. Willett & Nan Zhang, 2010. "The Slow Spread Of The Global Crisis," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 1(01), pages 33-58.
    • Handle: RePEc:wsi:jicepx:v:01:y:2010:i:01:n:s1793993310000068
    DOI: 10.1142/S1793993310000068
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Financial crisis; contagion; F32; G15;
    All these keywords.

    JEL classification:

    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

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