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Who are the regulators

The regulators of social and economic relations are a set of norms and social institutions that determine the behavior rules. This can be illustrated by the example of a forum. By registering, the new user agrees with the rules of the website. The site administrator in this case becomes the regulator and defines the list of allowed and forbidden actions.

The main task of an economic regulator is to create the rules that would be advantageous for the free competition and public benefit. Fair competition can be compared to a chess game where both players follow set game rules.

In theory, the players could cheat. For example, quietly remove the enemy’s queen from the board or return their own rook. Such actions do not promote fair competition and do not allow to identify the strongest player. Therefore, the arbiter monitors compliance with the rules of the chess game. The worst offender may even be disqualified, despite all their merits.

Economic regulators have to monitor entire economy sectors. Regulators don’t interfere with the internal structure of the company or an individual market player, but only monitor compliance with the established rules. The same applies to the chess arbiter. The regulator is not entitled to dictate a particular move to a chess player, but must immediately cancel the illegal action.

Regulator’s actions are beneficial to all. Companies get understandable game rules and can operate effectively within their framework. Individuals get a guarantee of equal conditions and an opportunity to earn, on the stock exchange too, when they trade risky assets.