Global Deleveraging: How are we doing?

Our essay on the European debt crisis identifies deleveraging as a core explanation for the current economic challenges in Europe and the US. This paper from McKinsey is an important update on several countries' progress so far. In the U.S., it looks like we are about half way there, but, in Europe, there is much farther to go.  Here is the McKinsey Quarterly on the reduction in debt in developed countries.