And with fixed nominal debts, lower inflation would trigger redistribution from borrowers to creditors, which would prolong the debt overhang and exacerbate the contraction due to the different propensities to consume and invest of those two groups. This is not an argument for raising inflation targets, as that would only create redistribution in the other direction.
But it is an argument for central banks to fulfil their objectives. However, while our mandate is symmetric, and our commitment to our mandate is symmetric, there is an asymmetry in the tools we can use to achieve it, which stems from the existence of a lower bound for interest rates.