Federal Reserve Bank of Philadelphia president Charles I. Plosser said market “failures” seen during the financial crisis resulted from poorly-conceived regulations that created distorted incentives.

“The financial crisis was not a failure of our capitalist system,” he said in prepared remarks. “Rather, it largely reflected a collection of incentives, some arising in private markets and some created by the government, that motivated individuals to act in ways that proved damaging to the nation’s overall economy.”

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