31  16  All speeches are available online at www.bankofengland.co.uk/news/speeches  16  But real returns on the Navy Fives and similar fixed rate securities continued to be highly volatile reflecting the very large swings in inflation for much of period – a period that was punctuated by frequent financial crises. That perhaps illustrates that there is a great deal more to stability - both financial and monetary - than nominal interest rates. 17  All speeches are available online at www.bankofengland.co.uk/news/speeches  17  References Anadu, K., M. Kruttli, P. McCabe, E. Osambela and C.H. Shin (2018), The shift from active to passive investing: Potential risks to financial stability?, Working Paper PRA 18-04, Federal Reserve Bank of Boston. Andersen, A., C. Duus, and T. Jensen (2016), Household debt and spending during the financial crisis: Evidence from Danish micro data, European Economic Review, 89, pp. 96-115. Avery Jones, J. (2019), Jane Austen’s income: insights from the Bank of England archives, Bank Underground Blog, 2 August 2019 Bank of England (2019), Financial Stability Report, Issue No. 45, July 2019.Bank of England (2018), Inflation Report, August 2018. Bank of England (2017a), Stress testing the UK banking system: key elements of the 2017 stress test, March 2017. Bank of England (2017b), Financial Stability Report, Issue No 42, November 2017. Borio, C. (2017), Secular stagnation or financial cycle drag?, Keynote speech, National Association for Business Economics, 33rd Economic Policy Conference.
In the US, EA and UK house prices have broadly grown at or below the growth rate of the economy, and real house prices have actually fallen relative to their pre- global financial crisis levels. Since the crisis, there has also been a marked reduction in financial sector debt as a share of GDP, which suggests that reforms have reduced leverage and risk markedly within the financial sector (Chart 3). This is not to be complacent. 25 The magnitude of interest rate cycles across the UK, US and EA have varied. Over both loosening and tightening  cycles between 1994 and 2007, the average cumulative change in interest rates in the UK has been around 150bps in the UK, compared to around 250bps in the EA and around 275bps in the US. 12  All speeches are available online at www.bankofengland.co.uk/news/speeches  12  Aggregates can hide significant problems. In some advanced economies, particularly the US, corporate debt has, as I have noted, been growing at a very fast rate accompanied by a loosening of underwriting standards. And to the extent that financial asset prices are being driven either by unrealistic expectations either of interest rates or of economic growth, there could be a sharp correction. Chart 2. Total debt stock in  Chart 3.