Journal article

Authors list: Bannier, CE

Publication year: 2006

Pages: 883-909

Journal: Review of International Economics

Volume number: 14

Issue number: 5

DOI Link: https://doi.org/10.1111/j.1467-9396.2006.00596.x

Publisher: Wiley

Abstract: 

This paper analyzes the role that the distribution of information played during the Mexican peso crisis 1994/95. In accordance with theoretical models, we find that, first, an improvement in the mean of posterior beliefs about economic fundamentals generally reduced speculative pressures. Secondly, the standard deviation of beliefs as a measure of information disparity did not significantly influence traders’ behavior. Information disparity did have a significant impact, however, when combined with the mean of beliefs. The combined effect, moreover, allows a tentative distinction between private or public information having dominated posterior beliefs. In this respect, thirdly, our analysis points to public information having driven speculative pressures.

Harvard Citation style: Bannier, C. (2006) The Role of Information Disclosure and Uncertainty in the 1994/95 Mexican Peso Crisis: Empirical Evidence, Review of International Economics, 14(5), pp. 883-909. https://doi.org/10.1111/j.1467-9396.2006.00596.x

APA Citation style: Bannier, C. (2006). The Role of Information Disclosure and Uncertainty in the 1994/95 Mexican Peso Crisis: Empirical Evidence. Review of International Economics. 14(5), 883-909. https://doi.org/10.1111/j.1467-9396.2006.00596.x