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Light Touch Regulation
Light touch regulation is a regulatory approach that emphasizes self-regulation, or the idea that businesses and organizations should be able to police themselves rather than being subjected to strict government oversight. It's a more hands-off approach than traditional, heavy-handed regulation.
Proponents of light touch regulation argue that it can encourage innovation and competition by reducing compliance costs and regulatory burden. They also argue that it allows for greater flexibility and adaptability in an ever-changing business landscape.
Critics of light touch regulation, however, argue that it can lead to market failures, such as negative externalities (unintended consequences that impact third parties) and moral hazards (when parties take on excessive risk knowing that they will be bailed out). It's a debated topic with supporters on both sides.