We argue that transparency, or information disclosure by public and private sector institutions should be viewed as an important component of the Catholic Social Thought process. A higher degree of transparency by a single institution denotes revealing a greater magnitude of truthful information that leads to optimization of actions by other individuals and institutions, thus ultimately, to maximization of social welfare. Based on the precepts of Catholic Social Thought, more detailed and unbiased information allows individuals to make more truthful observations of reality that subsequently rationalize their judgment and actions. This is particularly relevant for financial markets and institutions that are inherently forward-looking in their reasoning and actions, thus highly sensitive to information disclosure. We analyze this causal dependence with respect to transparency of selected central banks and financial reporting requirements.
Lyons B. and L. Orlowski (2006) “Transparency in Financial Markets and Institutions: A Catholic Social Thought Perspective." Communication at The Good Company. Catholic Social Thought and Corporate Social Responsibility in Dialogue, Pontificial University of St. Thomas (Angelicum), Rome October 5-7.