"Identifying International Financial Contagion: Progress and Challenges describes the extraordinary growth of international financial products and transactions, stimulated by the liberalization of international markets over the past thirty years. These products and transactions have caused a qualitative change in relationships - markets and economies are linked more closely and more rapidly than has been the case in the past. A framework of international financial regulation has met the challenges that these factors pose for policy makers, but that response has been predominantly reactive, patching up the system once a crisis has revealed its weaknesses. This book tackles these factors theoretically, providing an intellectually satisfying framework for the understanding of financial contagion."--Jacket.