Fiscal and monetary policies are important, but they merely assume a supporting role in facilitating adjustments of excesses and proactive efforts by the private sector. Needless to say, making the most of the market mechanism is a prerequisite in order to realize innovation.
Nevertheless, distrust in the market mechanism seems to be increasing,  BIS Review 64/2009  7  due to the emergence of the global financial crisis and to the fact that excess financial activity was one of the major factors behind the crisis.