In a nutshell, effective disclosure empowers consumers and enhances competition. The Federal Reserve Board has recently taken a new approach to increasing the effectiveness of disclosure--namely, surveying and responding to consumers through consumer testing.
Ultimately, the principles that John Williamson enumerated two decades ago have much to recommend them. Macroeconomic stability, increased reliance on market forces, and strong political and economic institutions are important for sustainable growth. However, with the experience and perspective of the past 20 years, we can see that Williamson’s recommendations were not complete.