Abstract or Introduction
The purpose of this paper is to consider the rationale of economic regulation, why regulation has
welfare benefits and why consumers of financial services, particularly retail consumers demand
regulation of the economy.
A poll carried out by the BBC showed that most people want their government to have more control
over the running of their economy. However, some academic liberals (Bentson, 1998) are skeptical
of the benefits of such regulation. These critics of economic regulation argues variously as follows;
that there is no market failures and imperfections, and that if they do exist they are not sufficiently
serious to warrant regulation, and that regulation may not practically solve these failures and
imperfections, and that if it does, it can only do so by imposing cost that might exceed the cost of
the original problem, and that imposing regulation raises serious moral hazards, and finally, that
regulation imposes a wide range of cost which is ultimately borne by consumers.
- Quote paper
- BA Christian Uwagwuna (Author), 2010, Tighter Grip on the Economy Needed, Munich, GRIN Verlag, https://www.grin.com/document/170699
Similar texts
Publish now - it's free
Comments