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Contagion in Three Forms Now Has Grip on Europe

  • 18.07.2011
  • By Simon Johnson, bloomberg.com
dollars

There are three types of contagion in a financial crisis, when the potential collapse of a firm, bank or country threatens to spiral out of control. The European Union today has all three.

The first type is purely psychological -- the panic of herd behavior. The second comes from thinking through the real effects that...

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