The more consumers are equipped to interpret disclosures, the more effective those disclosures are likely to be. A third feature of the moderate approach I am trying to chart is an active dialogue between policymakers and market participants. In my view, policymakers should serve as a voice for the development of infrastructure and sensible standards and practices.
Ideally such steps would be taken by market participants of their own volition, but sometimes informal interventions by policymakers can help foster cooperative efforts by market participants.