Over the past few decades, global inequality has either risen sharply or begun to moderate, depending on how you look at it. Inequality has risen in the sense that inequality within countries is often higher than it used to be.
However, restructuring sovereign debt would be a realistic option only if the financial system could also cope with a haircut. That’s because not much would be gained by bringing the financial system to its knees. There would also be an incentive for the community of states to step in for private creditors.