Computer Science
8 years ago

Bad Rules Lead to Financial Crisis: New Regulations May Worsen Economy

Cato Journal
Bad Rules Produce Bad Outcomes: Underlying Public-Policy Causes of the U.S. Financial Crisis
Bert Ely

Paper Summary

The financial crisis was caused by bad rules and human behavior, not just greedy bankers. New regulations might not solve the problem and could make things worse. People make financial decisions based on their nature, which can lead to crises. Policymakers need to understand this to prevent future disasters.

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