[Economist Stephen King] is generally quick to remind us that regulation creates markets. Without property law and contract law, markets, as we know them, won’t be able function at all. The framework in which to understand regulation is that good regulation creates functional markets and balances benefits between market players and society at large. Bad regulation creates dysfunctional markets, or none at all, and can impede production by market agents by creating new risks, and costly hurdles.
via Praise for good regulation – macrobusiness.com.au | macrobusiness.com.au.