What accounts for the sharp rise in the public debt ratio in OECD countries?

The public debt ratio in OECD countries has risen considerably since the early 1980s. What can its rise be attributed to? We examine eight possible explanations: The repetition of crises and recessions; The slowdown in potential growth; Excess private savings and therefore weak demand; Low wage growth and therefore weak household demand; Governments’ desire to offset income inequality and to reduce poverty with public income transfers; Population ageing and pension system deficits; Tax competition and declining tax rates; The shift to abnormally low interest rates. All the above explanations seem to be pertinent with the exception of excess private savings and declin ing tax rate s . T here are therefore so many possible explanations for the rising public debt ratio that it is highly unlikely to stabilise.