Regulatory oversight is essential to prevent financial crises from "summary" of Globalization and Its Discontents by Joseph E. Stiglitz
Regulatory oversight plays a crucial role in preventing financial crises. Without effective regulation, there is a greater risk of market instability and economic turmoil. The financial sector is inherently complex and interconnected, making it vulnerable to shocks and disruptions. In the absence of proper oversight, banks and other financial institutions may engage in risky behavior that can have far-reaching consequences. Regulation is necessary to ensure that financial institutions operate in a responsible and sustainable manner. It helps to limit excessive risk-taking and speculative activities that can put the entire financial system at risk. By setting clear rules and guidelines, regulators can promote transparency and accountability in the financial sector. This, in turn, can help to build trust and confidence among investors and the general publi...
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