Home > Terms > English, UK (UE) > Contagion

Contagion

Positive contagion is the tendency during a bubble period for new players to be attracted by the profits being earned by existing players. Negative contagion is the tendency during a financial crisis for the loss of confidence in the ability of major players to meet their obligations to spread rapidly among all their actual and potential creditors.

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  • Part of Speech: noun
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  • Blossary:
  • Industry/Domain: Banking
  • Category: Mortgage
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