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Transparency and currency crises

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  • Nam Kyu Kim

Abstract

The role transparency plays in the prevention of currency crises is widely acknowledged. Nevertheless, the relationship between transparency and currency crises has rarely been subjected to systematic cross‐national scrutiny. This paper attempts to explore the effect of transparency on currency crises by focusing on a specific dimension of transparency: the public dissemination of aggregate economic data by governments. My analysis provides strong evidence that greater transparency is associated with a lower likelihood of currency crises, regardless of economic conditions. When I add economic and political determinants of currency crises, the estimate of transparency remains unaltered in magnitude or statistical significance.

Suggested Citation

  • Nam Kyu Kim, 2018. "Transparency and currency crises," Economics and Politics, Wiley Blackwell, vol. 30(3), pages 394-422, November.
    • Handle: RePEc:bla:ecopol:v:30:y:2018:i:3:p:394-422
    DOI: 10.1111/ecpo.12117
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