The Effects of Post-War Regulation on Industrial Development and Financial Markets
Posted: 24 Apr 2020 Last revised: 22 Oct 2021
Date Written: May 25, 2021
Fraud and irrationality are often blamed for financial manias and panics. Investor euphoria can unleash social and technological breakthroughs, but the subsequent failures can destroy value and radicalize the political sphere. Are these events random, idiosyncratic, or driven by some force? The ex-post answers—be they monetary, criminal, or international contagion—have a profound impact on the role of government in society, but have questionable predictive power. This paper reviews evidence in the post-WWII period to support the interplay between government and investors in driving the business cycle.
Keywords: Bankruptcy, Tax, Business and Securities Law, Financial Crisis, Mania, Panic, Credit, Credit Law, Debt
JEL Classification: K35, K22, N21, N22, N11, N12, N41, N42, P12
Suggested Citation: Suggested Citation