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paper concludes by suggesting that this shift had lasting repercussions for the politics of financial regulation, conducing …
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This paper offers a simple theory of inefficiently lax financial regulation arising as an outcome of a democratic … political process. Lax financial regulation encourages some banks to issue risky residential mortgages. In the event of an …. This leads to a non-trivial distribution of gains and losses from lax regulation among households. On the one hand, renters …
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