They chose to restructure their balance sheets for corporate governance so demanded. However, the household sector continued to save money and the business community almost stopped borrowing money even at low rates of interest. This is a peculiar situation or rather a fallacy of composition problem that exacerbated the recessionary trend in the world economy.
Monetary policy becomes much less effective when only few companies are willing to borrow in this type of a recession. Fiscal policy takes over as an absolutely important instrument to boost up aggregate demand as well as to keep money supply from shrinking. In such troubled waters the navigational hazard is impaired visibility, which is quite often the case.