For example, the Federal Reserve writes rules to implement the Truth in Lending Act, which Congress enacted to ensure that consumers receive clear information about credit terms and costs. The Federal Reserve is also responsible for rules that implement fair lending laws, such as the Equal Credit Opportunity Act, which prohibits discrimination in credit transactions.
The general aim is for the price element to do most of the work, but in some cases, regulations with a quantitative element are in place as a backstop. Let me give as one example of this, the effect of regulation on dealer inventories of fixed income.