The economic-financial system has started up again from the place it got jammed. Monetary flooding has stabilized finance, while sovereign debt, though still a major factor, appears to be under control and at a significantly reduced cost.
The enormous liquidity in circulation is looking for new and high returns, given that OECD reports that 40 percent of bonds (including securities issued by corporations or public institutions) provide negative returns.
That is why one of the engines for restarting the machine is debt, or rather, private debt.
A recent report by the BNL research department, under the heading “A special overview: private sector debt,” states that the relationship between private debt (that held by citizens and businesses) and GDP is one of the indicators to keep under control as it measures the ability to repay the debt in the medium and long term. In the Eurozone, this indicator had risen from 110 to 147 percent between 1999 and 2009. In 2016, however, it was still at 140 percent.