ECB’s Constâncio highlights challenges in measuring contagion risk


Policymakers should be prepared to stem the risk of contagion even if the risks are difficult to monitor, Vítor Constâncio, the vice-president of the European Central Bank (ECB), said on Monday.

At the Bocconi University and Intesa Sanpaolo conference on Bank Competitiveness in the Post-Crisis World, in Milan, Italy, Constâncio said financial contagion, a situation when instability in a specific market or institution is transmitted to another market or entity, was crucial for policy making.

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