Cognitive Regulatory Capture

Cognitive Regulatory Capture

n. Psychology.

A condition of conflict or anxiety resulting from inconsistency between one’s duty as regulator and one’s actions, such as regulating the banking sector and trying to become well-liked by bankers. If the condition persists, CRC can mutate into an infectious disease, leading to euphoria and irrational exuberance. Can be fatal to the economy if allowed to continue for many years.

Known cures: independence, professional distance, integrity, deep recession, depression, Paul Volcker.

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