Keywords: economic crises, contagion effects, globalisation, emerging markets, Eastern Europe, national governments, creditors, investors, financial institutions, potential benefits, Bretton Woods, international agreements, monetary systems, exchange rate management, international finance, capital mobility, global economy, integration levels, market liberalisation, capital accounts, interdependences, developed economies, developing economies, Bulgaria, Czech Republic, Estonia, Latvia, Lithuania, Hungary, Poland, Romania, Slovenia, Slovakia, liability, scientific enquiry
Contagion effect of economic crisis in Eastern European countries
Different forces (governments, creditors, investors and financial institutions) and potential benefits determined a continuous expansion of globalisation process. After Bretton Woods system's failure (1971), international financial system entered into a new development phase that was characterised by strong capital mobility, a larger participation of emerging markets to the global economy's transactions. A higher integration level for these markets doubled by liberalisation of capital accounts generated a significant increase of interdependences between developed and developing economies from all regions of the world. The analysis of these interdependences is very important to understand the real nature of current economic and financial crisis and offers new perspectives on the effects of them at global level. This study is focused on the analysis of contagion effect of current economic crisis in Eastern European countries, identifying different factors that could explain the situation in this area.