Transparency and currency crises

Kim, Nam Kyu

doi:10.1111/ecpo.12117

Cited by 3 publications

(2 citation statements)

References 61 publications

(146 reference statements)

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“…FOI laws seem to be more effective when they operate in a strong civil society environment (Kossow & Kukutschka, 2017; Mungiu‐Pippidi & Dadašov, 2017). The performance of transparency seems to improve if instead of the existence of FOI regulation, the UN e‐government index which measures online service provision (e‐services) and openness (e‐participation) is used as the proxy for transparency (Andersen, 2009; Elbahnasawy, 2014; Kim, 2018; Park & Kim, 2020; Starke et al, 2016). Press freedom seems to be another enabling factor for FOI besides the rule of law (Costa, 2013; Vadlamannati & Cooray, 2017).…”

Section: Government Transparency As a Public Integrity Toolmentioning

confidence: 99%

Transparency and corruption: Measuring real transparency by a new index

Mungiu‐Pippidi

2022

Regulation & Governance

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Despite the salience of transparency in policy and democracy debates a global measurement of transparency has always been missing. In its absence, measuring the impact of transparency on accountability and corruption for a large number of countries has been difficult, with scholars using more or less adequate proxies. This paper introduces a new measurement of real transparency—the T‐index—using 14 de facto components, based on direct observations of official websites in 129 countries and five de jure components, based on the transparency laws and conventions adopted. The resulting index is a measurement with very good internal and external validity and moderate precision. The paper argues that de facto transparency must be considered alongside de jure (legal) transparency if we are to judge the impact (or lack of) transparency against accountability and corruption, as a large implementation gap exists, in particular in poor countries, between legal commitments and real transparency. The T‐index has significant impact on both perception and objective indicators of corruption, including perceived change in corruption over time as measured by the Global Corruption Barometer. An analysis of outliers shows that high transparency alone is not sufficient to achieve control of corruption, especially in countries with low human development and poor rule of law, although transparency is a robust predictor of corruption with GDP controls. The data with all sources is available for download as T‐index 2022 dataset: DOI 10.5281/zenodo.7225627 and an interactive webpage developed for updates is available at www.corruptionrisk.org/transparency.

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Section: Government Transparency As a Public Integrity Toolmentioning

confidence: 99%

Transparency and corruption: Measuring real transparency by a new index

Mungiu‐Pippidi

2022

Regulation & Governance

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“…Some exceptions are, Eichler & Littke (2018) who report that CBT has a stabilizing effect on ERV for developed economies. Kim (2018) demonstrates that CBT reduces the likelihood of a currency crisis. Contrary to this, Weber (2019a) finds that CBT leads to higher fluctuations in exchange rates in developed economies and insignificant effects in developing countries.…”

Section: Introductionmentioning

confidence: 99%

Does Central Bank Transparency Deter the Exchange Rate Volatility? New Evidence from Asian Emerging Markets

Aftab

Mehmood

2023

Journal of Central Banking Theory and Practice

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Exchange rate volatility has emerged as a significant challenge for Asian emerging markets since the adoption of the liberalization process. This study examines the influence of central bank transparency on exchange rate volatility using a sample of ten important Asian emerging markets. The study uses a fixed effect regression model covering the Asian financial crisis, global financial crisis, banking crisis, and taper tantrum episodes. Results show that an increase in central bank transparency has a stabilizing effect on exchange rate volatility, and this effect remains even after controlling for various internal and external factors. The uncertainty of US monetary policy increases exchange rate volatility, while US economic policy uncertainty contributes only during the global financial crisis. Interestingly, central bank transparency buffers the effects of the global financial crisis, indicating that it plays a facilitating role in maintaining financial stability. Studies that examine the role of central bank transparency in curbing exchange rate volatility, which is a crucial issue in these markets, are rare in emerging markets’ context. This research offers interesting findings by using a variety of robustness checks.

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The effect of central bank transparency on exchange rate volatility

Weber

2019

Journal of International Money and Finance

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The increase in central bank transparency was one of the main developments in central banking in the last two decades. This leads to the question of which effect central bank transparency has on the volatility of exchange rates. According to theoretical considerations, more information could either lead to more precise forecasts or to more noise trading. This raises the need for an empirical estimation of the relationship. The study shows that the effect of central bank transparency on exchange rate volatility depends on the development of countries. While there is no effect of central bank transparency in the composite sample and for developing countries, transparency increases exchange rate fluctuations in developed countries. Keywords: Central Bank Transparency ·Exchange Rate Volatility ·Monetary PolicyJEL: E24 ·E42 ·E58 ·F31 * The author wishes to thank Jürgen Kähler, Katrin Wölfel, and participants of the 23rd BGPE Research Workshop for very useful comments and suggestions.

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Transparency and currency crises

Cited by 3 publications

References 61 publications

Transparency and corruption: Measuring real transparency by a new index

Transparency and corruption: Measuring real transparency by a new index

Does Central Bank Transparency Deter the Exchange Rate Volatility? New Evidence from Asian Emerging Markets

The effect of central bank transparency on exchange rate volatility

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