Sunstein and Regulation

Today’s WSJ Opinion Journal speculates on Cass Sunstein’s role as the Administrator of the Office of Information and Regulatory Affairs.

“Credit regulation raises immense challenges, and there is a serious danger that, in light of the current crisis, government regulators will overreact,” Mr. Sunstein wrote in an op-ed on these pages last August. “The fundamental line of defense should be improving market competition, not eliminating it. And to improve competition, transparency is the place to start.” That piece, co-authored with the University of Chicago’s Richard Thaler, argued that better disclosure, combined with technology, would be more effective than playing “regulatory whack-a-mole” with unpopular industry practices.

The world expects wholesale re-regulation; the smart money is on a more nuanced — and market-savvy — approach.

Fresh-water economics with a Democratic flavor. No wonder Powell called Obama a transformational figure.

Thanks to reader ASR for the heads-up.


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