regulation theory

Regulation, in a governmental context, refers to rules that limit or control social behavior. In public policy, it involves creating and enforcing targeted rules. In political economy, it's the state's attempt to steer the economy, often by imposing controls on private businesses.1

Regulation theory, rooted in Marxism, examines how different forms of capitalism manage inherent instabilities like overaccumulation and class struggle. It often analyzes shifts from "Fordism" (mass production and monopolistic regulation) to "post-Fordism," characterized by globalization and neoliberal politics.2

While a "free market" is an ideal of unregulated economic exchange, real-world societies exist on a spectrum of regulation. Critics argue that market failures, such as externalities or monopolies, necessitate government intervention, while proponents believe markets can self-correct. Deregulation is the removal or reduction of these governmental controls.34