The rise in public debt over the past decade and a half due to governments’ borrowing to combat the Global Financial Crisis and COVID-19 is likely irreversible.

A research report by IMF economist Serkan Arslanalp and Berkeley economist Barry Eichengreen suggests that debt reduction is unlikely in practice due to population aging, rising interest rates, and political differences.

They argue that high public debts are inevitable and that expenditure limitations, tax hikes, and bank regulation are needed to prevent costly blowups.