Actually this time is different

Date

Authors

McKibbin, Renee Anne
Hsiao, Cody Yu-Ling
Tang, Chrismin

Journal Title

Journal ISSN

Volume Title

Publisher

Centre for Applied Macroeconomic Analysis (CAMA), The Australian National University

Abstract

Episodes of extraordinary turbulence in global financial markets are examined during eight crises ranging from Asia in 1997-98 to the recent great recession of 2008-10. The analysis focuses on changes in the dependence structures of equity markets through correlation and coskewness to answer the question of whether the great recession is different to other crises in terms of shock transmission through contagion. The results show that ‘this time is different’ and that the great recession is truly a global financial crisis. Other US sourced crises do not affect other markets through contagion, and emerging market crises transmit unexpectedly.

Description

Keywords

contagion testing, correlation, coskewness, Asian crisis, Russian crisis, LTCM crisis, Brazil crisis, dot-com crisis, Argentinian crisis, sub-prime, crisis, great recession, global financial crisis

Citation

McKibbin, R at al (20110). Actually this time is different. CAMA Working Paper Series. Working Paper 12/2011. Canberra: Centre for Applied Macroeconomic Analysis (CAMA), The Australian National University

Source

Type

Working/Technical Paper

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Entity type

Access Statement

Open Access
Open Access

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