Disclosure of reliable information facilitates market discipline, strengthens confidence, improves decision making and reduces the chance that rumors and misleading information could cause instability in national and global markets. Also, by facilitating market discipline, public disclosure helps reinforce supervisory efforts to encourage banks and other companies to maintain sound risk management practices and internal controls.
Moreover, the oil price shocks, analysis of which was not part of the standard tool kit of economists forty years ago, complicated matters considerably. For a variety of reasons, then, forecasters consistently underpredicted the future level of inflation, seeing considerably more disinflation from a particular policy stance than in fact occurred.