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Finance Topic:

Financial Regulation

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Financial regulation has to do with the role that government plays in financial markets.

Without government, crime would stop anyone without a personal army from being able to transact business. Too much government involvement, on the other hand, could make certain financial transactions too cumbersome and expensive to be worthwhile and could stifle economic activity.

Finding the proper balance of financial regulation is critical for the financial system to function, and has therefore been a near constant political debate.

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