Randomness of search uncovers gem

It is indeed fortunate for any economist to bring out a paper in the last month which begins its introduction; "Are credit markets particularly vulnerable to contagion effects..." and which is titled - Contagion in the Credit Default Swap Market. In fact it is based on research carried out in 2005 looking at the case of Ford and General Motors so it is the result of lengthy research and it so happens that publication date could not be better timed with all the problems of credit default swaps which of course led to the demise of AIG among other casualties.

The paper has come out of CEPII which is the leading French research establishment for the international economy.

The reason for the heading is the randomness of finally finding the piece. An email newsletter from Xerfi, the French economics research organisation, highlighted the work of Michel Aglietta whose work has been out of fashion with its emphasis on the need for greater regulation, but of course is now very much back in fashion, as financial markets move away from self regulation. Michel is an adviser to CEPII an organisation, I had not heard of, but seems an excellent resource on international economies.