The economy was being regulated by the government and there were several systems and hierarchies of operations which actually saved the inequality from rising after the depression. However, regulation was coming to be seen as a hurdle in many sectors which required expanding beyond the UK and entering European, American, and Asian markets. The regulations were mainly in the form of bilateral trade agreements that regulated the flow of goods and services from one country to another and also regulated the flow of money between countries. Too much regulation, as perceived by the private sector, was the reason from not being able to expand beyond the country and form profitable partnerships with neighbouring countries. The private sector came to believe that they were well equipped to handle the economy by being more free and thoughtful in their approach towards trade and asked for the government to intervene minimally to allow them to regulate their own conduct and give and offer a better product and service to society. The coordination of people in this kind of managed economy was more on the side of a free market system as designed and proposed by Smith, but the coordination was the cause of the connection between the capital theory, business cycles, and monetary theory (Econlib.org, 2015). This connection according to Hayek was the reason for the slum to have occurred and the reason why there is still instability in the market.