Answer to Question #89374 in Macroeconomics for BRENDA

Question

In the 1800's the USA ran into multiple banking crisies - approximately one every 20 years.

In the last 100 years - we have run into 3 crises - the 1930's and bank failures during the Great Depression. The Savings and Loan Crisis in the mid/late 1980's, and the Financial Crises on 2008-2009.

Based on this, explain hwo important you think government regulation and oversight is for the health,well-being, and proper functioning of the US Financial System. Also,add one item of your own, where you would like to see more government regulation and oversight.

Answer 1

Government regulation and oversight is important for the health, well-being, and proper functioning of the US Financial System, because market mechanism can't solve all problems and failures of financial system. One item of my own, where I would like to see more government regulation and oversight is monetary policy.