The political economy of financial regulation ensures that the expansion of regulatory oversight induced by Dodd-Frank will be followed by a phase of relaxation, since historically the introduction of regulatory regimes after a crisis is followed by a gradual easing of regulatory strictures.
Source quote, verbatim
The political economy of financial regulation ensures that af- ter the Dodd-Frank-induced expansion of regulatory oversight there will be a subsequent phase of relaxation of regulatory over- sight.
From
Wulf A. Kaal, Initial Reflections on the Possible Application of Contingent Capital in Corporate Governance (2012), VI. Benefits of Experimentation, p. 38 https://ssrn.com/abstract=1998455 · source PDF
Cite as
Wulf A. Kaal, Initial Reflections on the Possible Application of Contingent Capital in Corporate Governance (2012). SSRN: https://ssrn.com/abstract=1998455
Holds when
post crisis regulatory regimes generally
based on historical patterns of financial regulation
Classification
predictivesupport: arguedeconomics
Related claims
extended_bykaal:claim:2273857-020 Financial regulation is characterized and controlled by a classic collective action problem, and as a conseque...
restated_bykaal:claim:2273857-023 Once crises recede, regulatory oversight diminishes as societies and markets return to their prior equilibrium...
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