Tighter Grip on the Economy Needed

Essay from the year 2010 in the subject Economics - Macro-economics, general, grade: 67, De Montfort University Leicester, course: Contemporary Business Issue, language: English, abstract: The purpose of this paper is to consider the rationale of economic regulation, why regulation haswelfare benefits and why consumers of financial services, particularly retail consumers demandregulation of the economy. A poll carried out by the BBC showed that most people want their government to have more controlover the running of their economy. However, some academic liberals (Bentson, 1998) are skepticalof 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 sufficientlyserious to warrant regulation, and that regulation may not practically solve these failures andimperfections, and that if it does, it can only do so by imposing cost that might exceed the cost ofthe original problem, and that imposing regulation raises serious moral hazards, and finally, thatregulation imposes a wide range of cost which is ultimately borne by consumers.