Common Regulation Theory

Common Regulation Theory suggests that different countries or sectors coordinate their economic policies—such as interest rates or wage standards—to maintain overall stability and growth. Instead of competing aggressively, they establish shared rules or norms that help prevent conflicts, reduce economic volatility, and promote sustainable development. Think of it as a set of accepted guidelines that everyone follows to keep the economic system balanced, much like traffic laws ensure orderly movement on the roads. This cooperation fosters predictable interactions, fostering confidence and cooperation across nations or industries.