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Ashford ECO 406: Week 5 – DQ 2 – Financial Deregulation

Ashford ECO 406: Week 5 – DQ 2 – Financial Deregulation

1st Posting Due by Day 3. Financial Deregulation. The last two decades have taught us that when it comes to financial deregulation, it is possible to have too much of a good thing too quickly. Financial deregulation has often taken place indiscriminately without proper consideration of risks associated with the unfettered actions of borrowers and lenders. Compare and contrast less government intervention in the financial market and more intervention. Does deregulation lead to more economic growth and stability? Respond to at least two of your classmates’ postings

 

 

 

 

 

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Financial deregulation

            This in definition is to give freedom to financial institutions to manage how they will regulate the finances. Government should use the lazier-faire approach in this matter. Financial institutions should be able to manage their interests without the government coming in. However this has not been the case so far.

            The government has come in to regulate the activities of the financial market especially where private developers are involved. With this kind of freedom given by deregulation, the private financiers can actually use this advantage…

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