In the household sector, Federal Reserve data indicate that household net worth fell $ trillion in 2008, or about 18 percent, the largest annual decline recorded.6 Relative to disposable income, household net worth fell from a ratio of about 6 to one to less than 5 to one, erasing about a full year's worth of income in wealth.
Due to extraordinary circumstances, such as persisting low inflation and its potential effect on investment behaviour, central banks worldwide have been forced to take extraordinary measures. For example, in the last year and in an attempt to secure a return of inflation to levels closer to 2% over the medium term, the Governing Council decided to expand its asset purchase programme.