So the question then arises: what is the appropriate balance between the risk of higher debt and the benefits of the hoped-for faster decline in unemployment? In part, this depends on whether a particular level of interest rates induces households to keep increasing debt indefinitely, or whether debt instead accumulates up to some point, or some relativity to income, and no further.
The experience of recent decades, and the arithmetic of debt-servicing burdens, suggests the latter.2 But it is hard to be certain. Another question to ask when weighing up this balance is whether the question of how low unemployment can go depends on how fast you are getting there.