But once the unemployment rate gets far enough below (or above) the estimated NAIRU so that confidence returns that the labor market is experiencing excess demand (or supply), then the more normal response of real interest rates to incremental declines in the unemployment rate would again become appropriate. But you have to be careful about overdoing caution as well as overdoing aggressiveness.
-  There is a risk that the insolvency that lies at the base of the current crisis (although manifested until now largely in a lack of liquidity) may impart an inflationary bias to the system and that the unwinding of the imbalances leads to more inflation.