If economic policy-makers do not take appropriate measures quickly enough, there is even a risk-albeit a small one-that the world economy could end up with the classic dilemma-first spelled out by John Maynard Keynes-of widespread demand deficiency and a persistent deflationary gap.
From the start of that expansion in 2005 to its peak in 2012, the total assets of monetary financial institutions rose by more than 60 percentage points of GDP to € trillion, i.e. 3.55 times euro area GDP. But as the crisis highlighted, this expansion was not necessarily backed by rising productive capacity in the euro area economy.