Even without adverse shocks, household debt-service ratios would be expected to increase when borrowing costs return to more normal levels. It is the responsibility of households to ensure that, in the future, they are able to service the debts they take on today. Similarly, financial institutions are responsible for ensuring that their clients do not take on unmanageable debt loads.
Although only a few years have passed since then, the global economic landscape has completely transformed in the meantime – just think of the spread of globalisation, think of the introduction of the euro, think of the Asian crisis or the dotcom bubble. All these events and others have constantly shaped and reshaped our world.