Domino effects can be divided into distinct classes. As the basic framework (Figure 1.1) showed, there are three main categories of domino effects:
1. Sociopolitical. A political or social movement inspires other movements.
2. Economic. A change in confidence and other macro variables leads to a momentum change in the economy.
3. Financial. Transmission of socioeconomic, economic, and other information and technical positioning causes rapid changes in markets.
These categories were chosen to distinguish domino effects from one another. As the examples in this chapter will demonstrate, these three main categories have relationships that can lead to a strengthening of correlation between events. In order ...