A variant of this emerged in the early days of the Thai crisis: if only Thailand had revealed its forward foreign exchange position, markets would have operated smoothly to avoid crisis. This seems to be naïve, but we have to be careful in pointing this out: to question the benefits of greater transparency is like arguing against peace, freedom and motherhood.
So let me be quick to say that more transparency would help. But it is another thing again, in a world of complex causality, to see this as a fundamental solution. After all, it is hard to explain the extraordinary movements in asset prices in sophisticated markets (US equities in 1987; the yen in 1995–98).