Before revision: In this paper we will consider a generalized extension of the Eisenberg-Noe model of financial contagion to allow for time dynamics in both discrete and continuous time. Derivation and interpretation of the financial implications will be provided . Emphasis will be placed on the  continuous-time framework and its formulation as a differential equation driven by the operating cash flows . Mathematical results on existence and uniqueness of firm wealths under the discrete and continuous-time models will be provided .
After revision: In this paper we will consider a generalized extension of the Eisenberg-Noe model of financial contagion to allow for time dynamics of the interbank liabilities . Emphasis will be placed on the continuous-time framework and its formulation as a differential equation driven by the operating cash flows . Mathematical results on existence and uniqueness of firm wealths under the discrete and continuous-time models will be provided .