In a world where pandemics are more common than ever, high public debt in the US and its peers cannot be allowed to fester, according to former Reserve Bank of India (RBI) governor Raghuram Rajan.

The former chief economist of the International Monetary Fund (IMF) cautioned reporters in Rome that nations that continue to add to their existing debt piles expose themselves to the next crisis.


"We experienced both the pandemic and the global financial crisis," he stated on Tuesday. "People claim that since pandemics will occur more frequently in the coming century, we cannot be content with accumulating debt."
"Warning Apt to the United States"
According to IMF projections published last month, Rajan said his warning is appropriate for the US, whose debt trajectory will continue to rise steadily. When Donald Trump assumes office next year, he is currently considering who he should name to oversee that mountain of debt.
Rajan, a professor of finance at the University of Chicago Booth School of Business, stated, "I don't think we should be satisfied with this level of debt; it should be a vulnerability." "The United States is undoubtedly the recipient of this message."

According to the IMF, the US and China are primarily responsible for the global public debt, which is expected to reach $100 trillion by the end of this year, or 93% of the world's gross domestic product.


The fund noted that there isn't enough urgency to get governments' fiscal houses in order, even though slowing inflation and declining interest rates give them a window to do so.
"Difficulty for the World"
Rajan stated that such risks should not be undervalued and that debt must be decreased to provide nations with a safety net in times of need. He went on to say that a further vulnerability facing the world is that high debt levels also make it hard for nations to help one another.