Just reflate the debt away. Moderate inflation would lift people out of negative housing equity. A few years of inflation of roughly 5 per cent or so would be very attractive right now. Maintain the monetary stimulus and if necessary expand it further for the foreseeable future, and keep the fiscal stimulus going. Too much is better than too little. And, for goodness' sake, don't start paying back the public debt until we are well out of recession.
David Blanchflower, 'What’s so bad about inflation?' New Statesman