Regulatory consistency promotes market stability from "summary" of The Economics of Regulation: Principles and Institutions: Economic principles by Alfred Edward Kahn
Consistency in regulatory policies is essential for maintaining stability in markets. When regulations are consistent and predictable, it allows businesses to make informed decisions about their operations and investments. This predictability reduces uncertainty and risk, which in turn promotes market stability. Furthermore, regulatory consistency helps to create a level playing field for all market participants. When regulations are consistently applied and enforced, it prevents unfair advantages for certain players in the market. This fosters competition and ensures that resources are allocated efficiently. Inconsistent regulati...
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