Wednesday, April 28, 2010

Financial Reform and the Briar Patch

In 1971 George Stigler published his “Theory of Economic Regulation” in which he hypothesized that regulatory agencies tend to be “captured” by the organizations they are regulating, so that the regulated organizations benefit at the expense of the general public.

Stigler’s capture theory of regulation is playing itself out again in the financial market regulation that is currently being considered by Congress.

read more here

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