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Mechanisms and Prevention Strategies of International Financial Risk Contagion

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DOI: 10.23977/acccm.2025.070201 | Downloads: 9 | Views: 242

Author(s)

Zheng Xinyi 1

Affiliation(s)

1 Zhejiang Univeresity, Hangzhou, 310000, China

Corresponding Author

Zheng Xinyi

ABSTRACT

The mechanism and prevention strategies of international financial risk contagion are critical issues in the study of global financial stability. This paper systematically explores the mechanisms, influencing factors, and prevention strategies of international financial risk contagion from theoretical, empirical, and policy perspectives. First, based on theoretical models of financial risk contagion, it analyzes the mechanisms of direct contagion, indirect contagion, and psychological contagion, as well as their driving factors. Second, through historical case studies and empirical research, the existence, channels, and economic impacts of international financial risk contagion are verified. Finally, comprehensive prevention strategies are proposed, including macroprudential policies, international financial cooperation, financial market risk management, and national-level policy recommendations. The research shows that international financial risk contagion is complex and multifaceted, requiring multi-level and multi-stakeholder collaborative efforts for effective prevention. This study provides theoretical support and policy references for global financial stability.

KEYWORDS

International Financial Risk, Risk Contagion Mechanism, Macroprudential Policy, Financial Cooperation, Risk Management

CITE THIS PAPER

Zheng Xinyi, Mechanisms and Prevention Strategies of International Financial Risk Contagion. Accounting and Corporate Management (2025) Vol. 7: 1-5. DOI: http://dx.doi.org/10.23977/acccm.2025.070201.

REFERENCES

[1] Ma Shaoting. Research on Risk Contagion in the Opening of China's Financial Markets [D]. Yunnan University of Finance and Economics, 2023. DOI: 10.27455/d.cnki.gycmc.2023.000752.
[2] Pei Xiaowei, Gu Haoxuan, Liu Wei. Research on the Risk Contagion Effect of International Stock Markets under the Impact of the Pandemic [J]. Modern Business, 2021, (05): 114-116. DOI: 10.14097/j.cnki.5392/2021.05.036.
[3] Li Zheng, Zhao Bing. New Characteristics and Transmission Channels of Financial Risks in an Open Environment [J]. Finance, 2003, (01): 18-20.

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