Eight years after the financial crisis, governments, companies and consumers owe more than ever while the economy struggles. Credit: Michael Glenwood / The Times

Ancient Babylonian kings had a special tool at their disposal when economic or social conditions turned dicey: They would declare a “debt jubilee” and instantly wipe out borrowers’ loans, allowing average people deep in hock to start over with a clean slate.

It says something about the global economy in 2016 that the concept of a modern debt jubilee has been finding its way into some mainstream financial market discussions.

Eight years ago, unsustainably high debt was the root cause of the worst recession since the Great Depression. Yet world debt overall now is far above 2008 levels. And as with millions of American home buyers back then, many of today’s borrowers owe amounts that could become crushing burdens if the global economy should careen into […]