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According to Adam Smith, when a market is free from regulation, what mechanism is supposed to regulate and police the market, given that we are
According to Adam Smith, when a market is free from regulation, what mechanism is supposed to regulate and police the market, given that we are not in survival mode? According to Adam Smith, when a market is free from regulation, what mechanism is supposed to regulate and police the market, given that we are not in survival mode? Our human sentiment of compassion is supposed to police our sentiment of self-interest. Banks regulate the market because they are the ones who control who gets goods and loans to participate in the free market. Our desire to be the winner will prevent negative side effects of the free market. The stock market polices the market by controlling how investors respond to fluctuations in supply and demand
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