Financial Contagion
Rapid spread of financial crisis from one country/market to others.
Real World
The 2008 collapse of Lehman Brothers in the US triggered a global financial contagion: UK banks froze lending overnight, Icelandic banks collapsed within weeks, and world trade fell sharply into 2009.
Exam Focus
Explain the transmission mechanism (e.g. confidence loss → credit freeze → falling investment) rather than just stating 'it spreads' to access top-level marks.
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