Moreover, the continued deleveraging of outstanding debts increases the rate of deflation. Such a policy is usually a response to very slow economic growth, deflation, and deleveraging. The financial crisis triggered a wave of deleveraging with significant macro-economic consequences. After the 2008 financial crisis, economists expected deleveraging to occur globally. Household deleveraging by paying off debts or defaulting on them has begun in some countries. In 2019, Essar Group's deleveraging efforts reduce the debt by over Rs. A process of balance sheet deleveraging has spread to nearly every corner of the economy. Even then, QE can still ease the process of deleveraging as it lowers yields. However, precaution is not the most common reason for deleveraging. Deleveraging reduces the total amplification of market volatility on the borrower's balance sheet.