The Impact of European Deleveraging on Global Liquidity

It is difficult to say when the deleveraging process will be complete, at least at the global level.

Simultaneously, we had a debt and leverage crisis, followed naturally by a general phase of debt reduction and deleveraging, which still continues today.

The one exception is New Zealand, where a modest degree of household deleveraging seems to have occurred.

While much progress has been made, household deleveraging has hobbled private sector growth.