Shocks of various natures can interfere with the information flow in financial markets and thereby precipitate financial instability through valuation and macroeconomic risk. Historical examples of such shocks include higher interest rates, problems in the banking sector, increases in uncertainty, and asset market effects on balance sheets.
Apparently, the reduction has taken place mainly among households, so that the savings pendulum has shifted to the corporate sector. Corporate profitability has remained good in most countries, which is surprising, in the light of the heightened international competition. It may be that labour's pricing power has suffered even more from tighter competition due to globalisation than has that of companies.