While it is generally assumed that financial regulations contribute to financial stability and safety, experience shows that they can also be a cause of instability. Sound financial regulatory policy should therefore seek to not merely impose new regulations but to discover and strip away those regulations that can be shown to do more harm than good. It should also favor regulations that encourage financial-industry innovation, including ones that allow nonbank financial technology, or fintech, firms to compete on a level playing field with banks. Finally, to further encourage such innovation, policy should limit the government’s involvement in the direct provision of financial to those (rare) instances in which a clearly identified “market failure” prevents private-sector firms from doing the job with a reasonable degree of efficiency.
Banking and Finance
16 results found
This Week in Government Failure
Congress Puts Unions Above Taxpayers
The Hoover Myth Marches On
Reforming the Highway Trust Fund
Ron Paul’s ‘Plan to Restore America’
Great Moments in (Anti) Stimulus
Scott Walker’s Reforms Are a Good Start
Shining Some Much-Needed Light on America’s Real Infrastructure Problems
Problems with Federal Infrastructure
The Many Ways Bad Policy Worsens Your Daily Commute
Trump’s Budget Changes Tone On Infrastructure
The Supply Chain Crisis Doesn’t Demand More Federal Infrastructure Spending
This Is Our Emergency
The Murky Origins of the H-2B Program’s Prevailing Wage Rule