The origins of previous financial crises can be located in multiple factors that are linked with the financial system and the economic cycle, respectively. The risk today is not financial contagion, like in 2008. Instead, it represents a contagious political development.
As Woodford notes this result was first proven by Erceg, Henderson and Levin (2000) Erceg, Christopher, Dale Henderson and Andrew Levin (2000) “Optimal monetary policy with staggered wage and price contracts”, Journal of Monetary Economics, 46(2), pp. 281-313. 19  see note 11. 20  Mishkin, Frederic S. (1991) “Anatomy of financial crises” NBER Working Paper no. 3934.