Deregulation

Deregulation is the opposite of regulation, and refers to the process whereby the government of the economy pulls back slightly and allows a process to be kept in check by the market rather than through regulation.

There is usually an ideological debate to be had about how much regulation there should be in the world of finance, and money markets, banks and the products that can be offered, limits and checks and balances. Some have blamed deregulation or at least poor and ineffective regulation on the credit crisis or credit crunch in the last few years.

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