Research / BFI Working PaperJan 01, 2016

Regulatory Complexity and Policy Uncertainty: Headwinds of Our Own Making

The U.S. regulatory system has grown increasingly expansive, intrusive and complex in recent decades, its tax system has become ridiculously complicated, and its economic policies have become less predictable. I present several pieces of evidence related to these developments and discuss some of their costs. I then sketch some ideas to arrest or reverse these developments. In this regard, I stress the importance of simplicity in regulatory design, the advantages of policy designs that foster predictable regulatory responses, and the need for new institutions to restrain ineffective, excessively burdensome and capricious regulations.

More Research From These Scholars

BFI Working Paper Oct 1, 2016

An Index of Global Economic Policy Uncertainty

Steven J. Davis
Topics:  Financial Markets, Monetary Policy
White Paper Apr 21, 2021

Introduction to The Asian Monetary Policy Forum: Insights for Central Bankers

Steven J. Davis, Edward S. Robinson, Bernard Yeung
Topics:  Monetary Policy
BFI Working Paper Jul 21, 2021

Let Me Work From Home, or I Will Find Another Job

Jose Maria Barrero, Nicholas Bloom, Steven J. Davis
Topics:  Employment & Wages