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The Stabilizing Effects’ Illusion of the “Command and Control”-Type Regulation [Iluzia efectelor stabilizatoare ale reglementării de tip “comandă şi control”]

Author

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  • Croitoru Lucian

    (Banca Naţională a României)

Abstract

The alternation between euphoria and panic is the force that causes the business cycle, and regulation cannot temper the euphoria. A consequence of this conclusion is that regulation cannot soften a recession. To understand what regulation cannot do, in softening a recession, it is useful to recall that a recession occurs when the means to counteract a shock run out before the shock disappears.

Suggested Citation

  • Croitoru Lucian, 2013. "The Stabilizing Effects’ Illusion of the “Command and Control”-Type Regulation [Iluzia efectelor stabilizatoare ale reglementării de tip “comandă şi control”]," Revista OEconomica, Romanian Society for Economic Science, Revista OEconomica, issue 03, September.
  • Handle: RePEc:oen:econom:y:2013:i:03:id:362
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    More about this item

    Keywords

    monetary policy; financial economic crisis; risks; private demand; regulation;
    All these keywords.

    JEL classification:

    • E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

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