Contagion and the European debt crisis

摘要: The financial and economic crisis that started in August 2007 is a clear case of the materialisation propagation systemic risk. banking reached climax September 2008 with demise Lehman Brothers subsequent support to system. In spring 2010, it turned into sovereign debt crisis. Widespread instabilities repeatedly new heights since summer 2011. This article addresses phenomenon which at very centre what we are experiencing euro area, contagion. Contagion one mechanisms by instability becomes so widespread reaches dimensions. argues contagion phenomena play crucial role exacerbating problems area. As consequence, management all competent authorities should focus on policy measures able contain mitigate Several European Central Bank’s (ECB) interventions have been motivated need address