when watchdogs become pets – or the problem of 'regulatory capture'
- Written by Richard Holden, Professor of Economics, UNSW
Australia's two financial watchdogs have been criticised for their cuddly relationship with banks.ShutterstockMarkets require regulators. As Adam Smith, the champion of the invisible hand, notes in The Wealth of Nations, when individual interests are left unregulated they work to turn competitive markets into monopolies.
But what happens when...
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