Shiller Sees Trump Regulations as 'Behavioral Economics'

The video discusses the challenges of regulatory growth, highlighting the tendency of regulators to add new regulations without reviewing old ones. It examines the 1980 statute requiring regular reviews and critiques its effectiveness. The video also explores President Trump's approach to regulation, which ties new regulations to the deletion of old ones, using behavioral economics to incentivize regulators. Additionally, it covers the Federal Reserve's focus on financial stability as a key mandate post-2008 crisis, emphasizing the need for proactive planning.

What is the main issue with the current approach to regulation as discussed in the first section?

• Regulators are too focused on deleting old regulations.

• Regulations are not reviewed regularly.

• The 1980 statute is too strict.

• Regulators are more focused on creating new regulations than reviewing old ones.

What was President Trump's proposal to improve regulatory efficiency?

• Introduce new regulations without any conditions.

• Tie new regulations to the deletion of two old ones.

• Review regulations every decade.

• Increase the number of regulations.

What is the Federal Reserve's third mandate as mentioned in the third section?

• Economic growth

• Inflation control

• Financial stability

• Employment maximization

Why is financial stability considered a challenging mandate?

• It is only important during economic booms.

• It is not related to regulations.

• It requires planning ahead for potential crises.

• It can be achieved after a crisis occurs.

What event highlighted the importance of financial stability as a mandate?

• The 2010 European debt crisis

• The 1997 Asian financial crisis

• The 2008-2009 financial crisis

• The 2000 dot-com bubble