Macroeconomic Interdependence and Contagion

"Macroeconomic Interdependence and Contagion" is a specialized book that explores the complex relationships of financial crises and their impacts on various countries. The author, Sugiharso Safuan, examines the phenomena of interdependence and contagion that occur during financial crises. Interdependence describes the high market movement across all periods, while contagion refers to the intensified connections between markets following a shock. The book specifically analyzes contagion in Asian countries during financial crises and tests the specific transmission mechanisms of financial disturbances. By applying a co-integration model, the study deepens the investigation to identify the sources of contagion and their transmission channels, particularly in trade and the financial sector. The aim is to determine which of these channels is the most significant and how they contribute to the spread of crises.