Financial contagion in Euro zone sparks systemic crisis, impacting global stability.
The article examines how financial instability spreads between countries in the Eurozone, focusing on the phenomenon of contagion. The researchers used a model called DCC-GARCH and CDS as a tool to analyze financial markets in 9 Eurozone countries. They found that Greece played a significant role in spreading financial contagion to other countries in the Eurozone during the international financial crisis of 2007.