Average deleveraging episode in advanced economies since the mid-20th century took roughly four years, and private debt was reduced by about 15-19% of GDP. [3] The shock triggering an adjustment of expectations may be a demand or a supply shock – i.e. (that is) households or ﬁrms may deleverage.
BIS central bankers’ speeches  3  Policies for improved competitiveness What more can be done to maintain the positive performance momentum and to integrate those parts of the euro area that are lagging behind? Some euro area countries are not taking full advantage of their well-educated labour forces and of their potential in terms of innovation and global reach.