The Effect Of Economic Regulation Essay

1475 Words Nov 25th, 2016 6 Pages
Regulation, in its broadest implication, represents all the rules of order enforced by a presumed administration of government, with regard to the practices of those under the government 's control. Historically, many regulations prescribed by oppressive autocratic leaderships have caused sequences of misery and torment for the ruled. Granting all this, the fate of Spain in particular, took a dramatic yet positive turn in the early 700s when Muslim forces invaded and reigned over the Iberian Peninsula alongside their very own set of regulations. In the following several decades, these regulations had been polished and calibrated to adapt the Hispanic environment and became well-established in the 12th century on account of having economically cultivated Spain into one of the most prosperous countries of the Mediterranean, and socially assigned the nation a degree of civilization through developing religious tolerance between the Muslims, Jews, and Christians.
To fully understand its influences on the economy, it is imperative to abstract the science of government regulation from its historical context. In “The Effects of Economic Regulation,” Joskow lists some of the attributes of “good regulation”. He argues that good regulation is supposed to restrain quantity and promote quality. He also points out that good regulation constrains prices so that the firms earn neither excess nor insufficient profits. He goes on to say that good regulation regulates the efficiency of the…

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