> Regulation is a reaction to demand, it's not what creates demand. A regulation that mandates, e.g. catalytic converters, creates demand for them. Requiring c

> Regulation is a reaction to demand, it's not what creates demand. A regulation that mandates, e.g. catalytic converters, creates demand for them. Requiring car insurance, same. Examples abound. > The Fed also doesn't create demand for products and services. The Fed(eral reserve) sets monetary policy. It's supply side. By setting interest rates low, it increases demand for credit.