The U.S. economic regulatory structure is complex, with responsibilities fragmented among numerous agencies that have overlapping authorities. Coloring the assessment of troubles and solutions is a belief that the financial market is various from other industries. The current clamour ignores extant frameworks and continues to believe in their capacity to safeguard regulatory independence. The missions of two of the new agencies developed by Dodd-Frank—the Financial Stability Oversight Council and the Office of Monetary Research—do not contribute to the efficacy and efficiency of the monetary regulatory technique.
This report is part of Prosperity Unleashed: Smarter Financial Regulation Government policies have—for decades—empowered regulators to manage private dangers and mitigate private losses in an effort to avert monetary-sector turmoil from spreading to the rest of the economy.
The competitive procedure that is a organic part of a free enterprise technique is an option, and usually much more effective, way to regulate markets. Industry-based regulatory solutions can be far more tailored, more versatile, and far more successful than government mandates.
Lastly, recall a crucial locating of the outcome of the last federal hiring freeze: it was a poor idea. It makes it possible for regulators to assess the nature and magnitude of a dilemma, determine whether regulation is an acceptable response, and—if it is—assess alternative regulatory solutions.
For instance, the Government Accountability Workplace (GAO) recently issued a extensive appear at economic regulation completed soon after the Dodd-Frank Act, and titled the report Economic Regulation: Complex and Fragmented Structure Could Be Streamlined to Improve Effectiveness.”38 The report explored many ways in which the post-Dodd-Frank regulatory framework benefits in duplicative and inconsistent regulation.…