In some ways but it does correct itself.
The thing is an unregulated market will correct itself but it will experience massive highs which everyone will love than massive drops with could put people in the poor house or dead. So if unchecked people could be putting a lot of money in a failing business until it fails, once it fails it had corrected all the over investments.
However that is economic theory. Real life has real people who need to make it in the world. So there needs to be a moderating force. Regulation when used as a moderating force is quite handy, however it needs to allow some risk in the markets as risks allow wonderful successes just as it can cause massive failures. Communism and similar economics, while prevent people from starving on the street, it also puts the country in a time bubble where there isn't much progress over they years.
So the real question is where to set the dial on control. Too tight you cause your culture to stagnate, too little there is high chance of disastrous risk.
I expect the zone has less regulations than most of Europe but more regulations that the US has.