Government Responses and Regulation
The economic disadvantages of speculators has resulted in a number of attempts over the years to introduce regulations and restrictions to try and limit or reduce the impact of speculators. Such financial regulation is often enacted in response to a crisis as was the case with the Bubble Act 1720 which was passed by the British government at the height of the South Sea Bubble to try stop speculation in such schemes. This act was left in place for over a hundred years and was repealed in 1825. Another example was the Glass–Steagall Act passed in 1933 during the Great Depression in the United States, most of the Glass-Steagall provisions were repealed during the 1980s and 1990s.
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