Government officials with financial backgrounds deregulate more, benefitting future employers.
The article looks at how government officials' past and future careers in finance affect financial regulations. By studying the job histories of over 400 top officials from OECD countries, the researchers found that central bank governors with financial backgrounds tend to deregulate more. They also discovered that finance ministers, especially from left-wing parties, are more likely to work for financial companies in the future if they make policies that benefit those companies while in office. This shows that policymakers' career paths and concerns can influence financial regulations.