01856cas a2200265 a 4500 AALejournalIMF022706 230101c9999 xx r poo 0 0eng d 20.00 USD 9781484397237 1018-5941 BD-DhAAL BD-DhAAL Brandao Marques, Luis. Country Transparency and the Global Transmission of Financial Shocks / Luis Brandao Marques, R. Gelos, Natalia Melgar. Washington, D.C. : International Monetary Fund, 2013. 1 online resource (38 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students 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. Mode of access: Internet Gelos, R. Melgar, Natalia. IMF Working Papers; Working Paper ; No. 2013/156 Full text available on IMF https://elibrary.imf.org/openurl?genre=journal&issn=1018-5941&volume=2013&issue=156 IMF e-Library