The debt-GDP ratio had a long downswing in the 1960s and early 1970s, followed by a  1  The precise proposition is that the primary, or noninterest, component of both budget and current account deficits must remain close to zero to stabilize the ratio of debt to national output.
As an example of the structural change in the European financial sector, it is worthwhile noting that the size of the money market and investment fund sector represented only 17% of banks’ total assets in 2008 but is now at 40%. Whereas the banking sector shrank by 18% since the crisis, the fund sector more than doubled since 2008.