Most economists feel that overly strict financial regulation from 2000 to 2006 contributed to the financial crisis of 2007-2009.

Question

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There is ongoing debate among economists about the role of financial regulation in the 2007-2009 financial crisis. Some argue that insufficient regulation and lax enforcement allowed risky behavior and excessive leverage to build up in the financial system, while others argue that overly strict regulation (such as the Community Reinvestment Act and affordable housing mandates) and government policies (such as keeping interest rates too low for too long) contributed to the crisis.

Most Economists Feel That Overly Strict Financial Regulation from 2000