Do government regulations or market self-regulation mechanisms have a greater impact on the stability of financial markets?

Dear Researchers, Scientists, Friends,

Financial markets operate in a dynamic and complex environment in which both government regulation and self-regulation mechanisms play a key role. Countries introduce regulations on the functioning of banks, stock exchanges and investment funds, but some theories suggest that over-regulation can undermine the innovation and efficiency of financial markets. On the other hand, self-regulatory mechanisms, e.g. clearing institutions and liquidity rules, can stabilise markets, but without state supervision, there is a risk of abuse and speculation. For the purposes of this discussion, I have formulated the following research thesis: state regulation is crucial for the stability of financial markets, but excessive intervention can lead to a reduction in their effectiveness and innovation. Accordingly, this is a fundamental question of economic policy and financial stability affecting global capital markets. This problem can be analysed in the context of various financial crises, e.g. the 2008 crisis, where the lack of regulation of the derivatives market led to disastrous consequences. At the same time, research on economies with varying degrees of regulation can indicate which combination of state intervention and self-regulatory mechanisms provides the best market stability.

My articles below are related to the above issues in some aspects:

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And what do you think about this?

What is your opinion on this matter?

Please answer,

I invite everyone to the discussion,

Thank you very much,

Best regards,

I invite you to scientific cooperation,

Dariusz Prokopowicz