Prior to the credit crisis of 2007-2009, there was a trend toward gradually allowing private markets to discipline risk-taking by financial institutions and minimize the role of government.

Question

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Before the credit crisis of 2007-2009, there was indeed a trend towards deregulation, which allowed private markets more freedom to discipline risk-taking by financial institutions, with the expectation that this would reduce the need for government intervention. This approach was based on the belief that markets could efficiently regulate themselves.

Prior to the Credit Crisis of 2007-2009, There Was a Trend