The average debt levels of industrial countries have risen to reach 320% of GDP by 2010, starting from a modest level of 165% of GDP in 1980. This is an annual average increase of more than 5 percentage points. Both private and public sector debt levels have risen dramatically.
As it is neither realistic nor desirable for banks to meet all financial intermediation needs, the Federal Reserve and other authorities are also making efforts to stabilize financial markets more broadly.