As one examines the slowing midyear economy, one sees the results of a perplexing mix of major economic forces. As an analogy, multiple large boulders are hitting the economic lake, and each one is creating waves and turbulence. The US economy, after rebounding from the COVID-19 pandemic in 2021 thanks to massive deficit spending and low-interest-rate monetary policy, is now showing negative real growth and delivering record-breaking levels of inflation while bringing much less in terms of personal income growth. At the same time, the economy is being shocked by rising energy prices that result partly from the Russo–Ukrainian War. And one more boulder to fall in the economic lake is China (the world’s second largest economy) imposing lockdowns in major
population centers in an effort to control a COVID-19 outbreak. This adds another dose of uncertainty to US export prospects as well as limiting improvements in the uneven flow of imports to US ports.
The Mercatus Center’s RegData database makes it possible not only to measure regulations within a jurisdiction but also to compare regulations between jurisdictions, both national and subnational. In “Census of Regulatory Restrictions,” Kofi Ampaabeng, Patrick McLaughlin, and Thurston Powers use RegData to compare the regulatory landscapes of the United States, Canada, and Australia, as well as their states and provinces. They address the volume of regulations, the complexity of regulations, the industries affected by regulations, and (in the case of the United States) the agencies that issue them.
The state of Ohio does not currently have a financial regulatory sandbox but may wish to consider creating one, especially given that Ohio’s significant financial sector, highly educated workforce, and proximity to other major economic centers position it well to play a leading role in beneficial financial innovation. Financial services are evolving rapidly. This innovation has the potential to benefit both consumers and states that create a regulatory environment that facilitates innovation while preserving necessary protections. Regulatory sandboxes, if designed and executed well, can play a role in creating this environment.
