That the IMF adopt a code of good practice for financial and monetary policy similar to that on transparency in fiscal policy. That the IMF publish more information about its members and their policies and about its own decision making. In addition, the G-7 made several other recommendations to strengthen the global financial system. They concerned better data on global capital flows, strengthened national financial systems, and greater private sector lender responsibility for loss in order to diminish moral hazard. The better the information, the better the functioning of the markets.
Poor information adds risk.
The problems caused by poor information occur at many levels, all of which affect the riskiness of foreign investment. Economists make a distinction between risks that can be insured against and those that cannot. In the former, loss occurs with a more or less known frequency, and precautions can be taken either by setting aside reserves or by buying insurance. Risk is a clear and certain cost of business. Uninsurable risk is so unpredictable that the bad events inevitably come as a surprise.