# kaal:claim:2273857-023

**Claim.** Once crises recede, regulatory oversight diminishes as societies and markets return to their prior equilibrium, and this dichotomy causes reform legislation and deregulatory legislation to be enacted in quick succession.

**Type.** mechanism  **Support.** argued

**Holds when.**

- after markets return to normalcy

**Source quote.**

> Following crises, the process is reversed and regulatory oversight diminishes as societies and markets return to their prior equilibrium. As a result of this dichotomy, reform and deregulatory legislation are often enacted in quick succession.

**From.** Wulf A. Kaal, *Dynamic Regulation of the Financial Services Industry* (2013), II. The Political Economy of Financial Regulation, page 12

**Cite as.** Wulf A. Kaal, Dynamic Regulation of the Financial Services Industry (2013). SSRN: https://ssrn.com/abstract=2273857

**Verify.** sha256 of source PDF `e7cb3dea40593135acc99a9b00690138fe01020514ebf388f5140e1b0e59e82a` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202013%20-%20Dynamic%20Regulation%20of%20the%20Financial%20Services%20Industry.pdf

**Failure mode.** post-crisis oversight decay  (family: enforcement-gap)

**Topics.** institutional-design, economics

**Keywords.** deregulation, regulatory-cycles, collective-action-problem, political-economy

**Related claims.**

- extended_by: https://wulfkaal.github.io/claims/kaal-2014-dynamicregulationviagove-004
- extended_by: https://wulfkaal.github.io/claims/kaal-2014-dynamicregulationviagove-008
- restates: https://wulfkaal.github.io/claims/1998455-025

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