The transition was facilitated by the increase in the public debt and the exceptional monetary expansion, which increased the amount of resources available to the private sector. The banks’ deleveraging was significant in Europe as well. At a sample of 43 large banks in eleven countries, the leverage ratio came down from 26.0 in 2011 to 21.2 in 2014.
The global economy suffered the worst crisis since the Great Depression of the 1930s, and was long unable to recover from the recession that followed. Fortunately, the global economy is now reemerging from the aftermaths of the crisis: growth has gained momentum, and the markets have stabilized. This is a result of many countries’ work in cooperation to make their financial systems more stable.