And clearly neither of these tasks can be taken up by monetary policy. Conclusion  Let me conclude with a cautionary tale. Innovation is the quintessence of entrepreneurship and a cornerstone for economic growth and prosperity in market-based economies. But there can be innovations that create more problems than the ones they were originally conceived to address.
I am reminded of the two mortal sins of economic policy-making that clearly transpire when reading Carmen Reinhart and Kenneth Rogoff’s excellent book on financial crises: arrogance and ignorance.