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Business LibreTexts

11: The Economics of Financial Regulation

  • Page ID
    610
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    Learning Objectives

    By the end of this chapter, students should be able to:

    • Explain why the government can’t simply legislate bad things out of existence.
    • Describe the public interest and private interest models of government and explain why they are important.
    • Explain how asymmetric information interferes with regulatory efforts.
    • Describe how government regulators exacerbated the Great Depression.
    • Describe how government regulators made the Savings and Loan Crisis worse.
    • Assess recent regulatory reforms in the United States and both Basel accords.