The recent crises in much of the emerging world have shown how counterproductive, if not disastrous, this market guidance can be. My second point is that not only do we need to consider carefully what the right information is, we also have to put in place the appropriate incentives for participants to use and disclose it.
Awareness of this incentive issue can be found in the proposed revision of the Basel Capital Accord. For instance, sovereign risk weights are expected to be lower for those countries which have reached internationally accepted standards with respect to data dissemination.