In the past 10 years, the U.S. market has continued its robust growth,
fueled by expansion in private debt securities and undeterred by the
boom-and-bust of the equity market bubble. Notably, the U.S. financial stock is
dominated by securities - private equity and debt - to a much greater extent
than other markets in the world, with a relatively limited role played by U.S.
government debt securities.
The U.S. accounts for the largest share of the global financial stock (37 percent). The total U.S. financial stock is now $44 trillion, more than double its size 10 years ago, a growth rate of 8.6 percent a year since 1993, in line with the overall global rate of 8.4 percent.
The size of the U.S. financial stock relative to GDP has increased from 179 percent in 1980 to 397 percent in 2003 due to growth in private debt and equity securities. This "financial deepening" exceeds that of the eurozone, but is close Japan's, where, however, the depth is largely driven by government debt expansion.
The U.S. exemplifies the dominance of market-based financing and private securities in its role as the hub in the global capital market. Due to its size, liquidity, and economic health, the U.S. attracts the lion's share of cross-border equity flows, and foreigners hold an increasing share of its financial stock.
In contrast, bank intermediation and government debt securities play a smaller role in the U.S. than in the rest of the world. Launch this chapter (PDF - 354 KB)
The U.S.: From Boom to Bust? In the next 20 years the U.S. baby boomers will enter retirement, creating a significant economic "headwind“ for the nation. From The Coming Demographic Deficit: How Aging Populations Will Reduce Global Savings. Read more
