contagion

Definition

Financial panic spreading from one market, institution, or asset class to others like a very expensive cold. When one bank sneezes, the whole financial system might catch pneumonia.

Example Usage

Regulators worried about contagion risk if the troubled bank's creditors weren't paid in full.

Source: Financial crisis and economics terminology

Related Terms

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conditionality

The practice of attaching specific conditions or requirements to financial assistance, loans, or agreements, most notably used by international financial institutions. It's the global economic version of "you can have dessert after you eat your vegetables," except the vegetables are structural reforms and the dessert is billions in credit. The IMF's favorite way to ensure countries follow through on promises.

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cash

Money in tangible form that doesn't require a banking app, passwords, or digital footprints—the preferred payment method of people doing things they'd rather not explain to auditors. Useful for those who remember what actual currency feels like.

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free cash flow

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Double-Entry Bookkeeping

Every transaction gets recorded twice—one debit, one credit—ensuring your mistakes cancel each other out... usually.

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conservatism principle

The accounting guideline that requires recognizing expenses and liabilities immediately but only recognizing revenues and assets when reasonably certain—essentially pessimism as professional policy. It's why accountants anticipate losses but never gains.

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rating

The act of assigning a score, rank, or evaluation to something based on predetermined criteria; the quantification of opinion into a number so we can argue about it online.

💰 Finance / Accounting

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