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Chapter 11 The Economics of Financial Regulation
Chapter 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.