- "Since the second half of the 1990s, in the United States and Europe, there have been fairly strong correlations between:
• the debt burden of companies and their market capitalisation (except in the United Kingdom);
• investment by companies and their market capitalisation;
• households' debt burden and their property and financial wealth (predominantly property wealth in the United States and the United Kingdom)."
- "We use these correlations to try to ascertain the length of the period of deleveraging by households and companies."
- "We find that, to be consistent with market capitalisation and household wealth:
• the debt ratio of companies must decline by a further 5 percentage points of GDP in the United States, and 10 percentage points of GDP in the euro zone;
• the debt ratio of households must decline by a further 12 percentage points of their disposable income in the United States, 6 percentage points in the euro zone and 15 percentage points in the United Kingdom."
Natixis Flash Economics 431 20100901
• the debt burden of companies and their market capitalisation (except in the United Kingdom);
• investment by companies and their market capitalisation;
• households' debt burden and their property and financial wealth (predominantly property wealth in the United States and the United Kingdom)."
- "We use these correlations to try to ascertain the length of the period of deleveraging by households and companies."
- "We find that, to be consistent with market capitalisation and household wealth:
• the debt ratio of companies must decline by a further 5 percentage points of GDP in the United States, and 10 percentage points of GDP in the euro zone;
• the debt ratio of households must decline by a further 12 percentage points of their disposable income in the United States, 6 percentage points in the euro zone and 15 percentage points in the United Kingdom."
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