The International Contagion Effect Of Financial Crisis And The Lesson For China

With the development of financial liberalization and world economy, governments had deregulation of the financial industry. Then the financial innovation developed rapidly, and the world financial markets congregated into a globally integrated market gradually. The world economy benefited much from the global financial integration and the financial innovation, while also suffered a lot of economic disasters. In recent decades, the frequency and force of financial crises have been rising, and the loss of global economy caused by the crises has been increasing.In 2008, a serious financial crisis burst in the America financial market, which has long been regarded as a perfect and efficient market, and the damage of the global economy far exceeded our expectations. So we need to reflect on the behaviors advocated by us and analyze the causes of the crisis. Based on this background, this paper studies the international contagion channels of the America financial crisis.After the review of some related researches on international contagion of the financial crises, this paper summarizes the theories of the financial crises and their international contagion mechanisms. Second, the causes of the America financial crisis are discussed, and its international contagion effect on the global stock markets, international financial institutions and international trade and world economy are analyzed, the schematic map of its international contagion channels is summarized. Third, by using the model of Copula-GARCH(1,1)-t to study the changes of the correlation between the America stock markets and the others of the main countries in this crisis, this empirical study proves the perfection of the financial markets is and important factor of the contagion effect and the international financial activity of the domestic financial institutions of the contaged country is an important contagion channel in global financial markets. Finally, the influence caused by the crisis on China's financial markets and economy is studied. It isn't serious, but the lesson of the crisis should be learned.