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Recent Events Have Convinced Many That Reforms Are Needed in the Financial

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Recent events have convinced many that reforms are needed in the financial system to discourage speculation, in which people seek to make money by merely buying and selling pre-existing things, rather than by making new or better or, at least, more things. Describe how speculation might have macroeconomic consequences that justify government prohibition or regulation .

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Speculation diverts savings, thus reduci...

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