Financial intermediaries connect savers and borrowers. Examine growth in intermediation from the following perspectives.
a. Plot the ratio of total credit market debt owed (FRED code: TCMDO) to population (FRED code: POP). Because credit market debt is expressed in billions and population in thousands, multiply TCMDO by one million to correct for the difference in units. Interpret the plot.
b. Plot the ratio of total credit market debt to nominal GDP. Interpret the plot.
c. Plot the ratio to nominal GDP of the value added by financial corporate business (FRED code: A454RC1Q027SBEA). Interpret the plot since 2005.