Regulating Systemic Risk Through Transparency: Tradeoffs in Making Data Public
15 Pages Posted: 17 Dec 2011 Last revised: 29 Dec 2013
Date Written: December 2011
Public or partial disclosure of financial data is a key element in the design of a new regulatory environment. We study the costs and benefits of higher public access to financial data and analyze qualitatively how frequency, disclosure lag and granularity of such open data can be chosen to maximize welfare, depending on the relative magnitude of economic frictions. We lay out a simple framework to choose optimal transparency of financial data.
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