6. (7 pts) Financial crises have frequently been important triggers of recessions. Stricter regulations on financial ins
Posted: Sun May 08, 2022 9:07 am
6. (7 pts) Financial crises have frequently been important triggers of recessions. Stricter regulations on financial institutions (for example, requiring them to hold more capital and thus use less leverage), would reduce the likelihood of financial crises. Would such regulation be clearly beneficial, or are there tradeoffs? Briefly explain.