Finally, central banks have spent decades building up their credibility and it seems unlikely that they would be willing to compromise this achievement. Even if they were, inflation expectations and nominal interest rates would rapidly adjust as market participants become aware of a changed inflation environment.
To my mind, the main problem with large public debts is not that they result in high average inflation rates but that deviations from the central bank’s inflation objective become larger and more protracted. To understand this, suppose that inflation rose unexpectedly, warranting a tightening of monetary policy to reduce the risk that it would stay permanently above the objective or target.