How to order
IMF Publications

Related material:
Transparency at the IMF--A Factsheet

Working Papers in full text
2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 All

Other research-related activities and publications of the IMF can be found at IMF Research

Free Email Notification

Receive emails when we post new items of interest to you.

Subscribe or Modify your profile

Country Transparency and the Global Transmission of Financial Shocks

Author/Editor: Luís Brandão Marques | Gaston Gelos | Natalia Melgar
Authorized for Distribution: July 3, 2013
Electronic Access: Free Full Text (PDF file size is 1,462KB)
Use the free Adobe Acrobat Reader to view this PDF file.
Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate.

Summary: This paper considers the role of country-level opacity (the lack of availability of information) in amplifying shocks emanating from financial centers. We provide a simple model where, in the presence of ambiguity (uncertainty about the probability distribution of returns), prices in emerging markets react more strongly to signals from the developed market, the more opaque the emerging market is. The second contribution is empirical evidence for bond and equity markets in line with this prediction. Increasing the availability of information about public policies, improving accounting standards, and enhancing legal frameworks can help reduce the unpleasant side effects of financial globalization.
Order a print copy
Series: Working Paper No. 13/156
Subject(s): External shocks | Financial systems | Emerging markets | Stock markets | Bond markets | Transparency | Economic models
    Published:   July 3, 2013        
    ISBN/ISSN:   9781484397237/1018-5941   Format:   Paper
    Stock No:   WPIEA2013156   Pages:   38
    Price:   US$18.00
Please address any questions about this title to