The global implications of financial contagion in developed capital markets

摘要

The main aim of this research paper is to investigate the consequences of financial contagion between developed capital markets, such as: USA, France, UK and Germany in terms of global financial crisis. In recent past, the impact of international transmission mechanisms significantly affected the investment behavior due to the propagation of financial shocks. The risk of financial contagion highlights the vulnerability of traditional assumptions based on efficiency and rationality considering the global implications of resource allocation performance and international portofolio diversification.