Daily Archives for May 8, 2008
Contagion – Definition by Worldbank
The World Bank has a fairly comprehensive overview over different definitions of contagion and documents related to recent contagious events in the financial markets. Some excerpts: Broad Definition: Contagion is the cross-country transmission of shocks or the general cross-country spillover … Continue reading
Contagion – Definition by Calomiris
In his article on Global Financial Architecture, Charles Calomiris defines “Contagion”: Correlations in asset returns are much higher across emerging market countries during crises than at other times, and even government bond yields move together to an unusual degree during … Continue reading
Hedge Funds and Benfords Law
Glyn Holton wrote an article about how to detect fraud in the reports by Hedge Funds: using Benford’s Law. Benford’s law, also called the first-digit law, states that in lists of numbers from many real-life sources of data, the leading … Continue reading