AbstractTwo frameworks for understanding the debate on regulation are discussed. In the first, an economizing perspective, various institutional arrangements are seen as instruments and the question posed is which is the most efficient in achieving public objectives. The second, a political perspective, begins from economizers' lack of interest in the basic organizing principles of the political structure within which the choice of regulatory arrangements occurs. Conceptions of such principles in the American case are considered and the implications of each for the choice of regulatory institutions are addressed. A parallel discussion is undertaken for the United Kingdom. The paper concludes by noting, among other things, that from a political perspective, an extensive regulatory sector looks more attractive than it does from an economizing perspective.
Why does the United Kingdom (UK) have inconsistent preferences on financial regulation? The case of banking and capital markets
