Which of the following laws suggests that attempts by a central bank to regulate the level of lending by banks imposing certain controls can be circumvented by the banks searching alternatives out of the regulatory preview'? (a) Flag of Convenience Law (b) Swiss Syndrome Law (c) Goodhart's Law (d) Okun's Law

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter17: Financial Markets
Section: Chapter Questions
Problem 30CTQ: Explain how a company can fail when the safeguards that should be in place fail.
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Which of the following laws suggests that
attempts by a central bank to regulate the level
of lending by banks imposing certain controls
can be circumvented by the banks searching
alternatives out of the regulatory preview'?
(a) Flag of Convenience Law
(b) Swiss Syndrome Law
(c) Goodhart's Law
(d) Okun's Law
Transcribed Image Text:Which of the following laws suggests that attempts by a central bank to regulate the level of lending by banks imposing certain controls can be circumvented by the banks searching alternatives out of the regulatory preview'? (a) Flag of Convenience Law (b) Swiss Syndrome Law (c) Goodhart's Law (d) Okun's Law
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