Better regulation can be achieved without resorting to statutory state regulation, which tends to be ineffective, cumbersome and poor value for money, according to a new study published by the Institute of Economic Affairs.*
In the study, Keith Boyfield, chairman of the newly launched IEA Shadow Regulatory Policy Committee, says that regulation has become the boom industry of the twenty-first century and the cost of regulation to the UK economy has been estimated at over £100 billion a year, or between 10 to 12 per cent of GDP.
Rather than rely on unwieldy and ineffective statutory regulation, the study shows that market-based regulatory mechanisms can offer a more effective means of maintaining well-regulated markets. For example, Professor Philip Booth and Terry Arthur show how stock exchanges can offer more effective oversight of securities marke