Perhaps central banks will decide to simply print up money and donate to those who have too much debt, which is a debt jubilee. This would be a way to stimulate the economy without hurting savers with negative interest rates. Unlike Fed rate cutting that lacks believability and effectiveness, this would be highly credible as consumers could feel the benefits and get emotional about it, thus stimulating demand.
To make this work it would have to be similar to the tax code where those who are neediest get the best outcome. If someone is truly wealthy they shouldn’t get to benefit from debt forgiveness.
If done in a harsh recession it might not cause that much new inflation, assuming no new credit is granted and debtors merely get debts reduced. If those who qualified for the debt cut were labeled on their credit report as using the program then lenders might be unwilling to loan them more money and this would act to reduce the risk of inflation from the program.
The growth of debt in the U.S. went from roughly 150% of GDP to double that about 20 years ago, something that is unprecedented except in WWII. This was a huge mistake by banks to loan so much debt, and by corporations to issue so many BBB rated cov-light bonds. The only solution is either massive bankruptcy (a sure recipe for a depression as retirees who own bonds would be ruined and banks would collapse) or else do a jubilee.
To avoid causing inflation it would vital to get the beneficiary of the jubilee to commit to a long term low debt lifestyle so as to avoid encouraging the growth of inflation causing bank debt.
There is no way the masses of people, many of whom suffer from stagnant wages, can earn enough after-tax income to pay down their debt. By discounting the future investors will see that consumption and corporate profits will decline, making stock prices decline.
Until this problem is resolved then the economy is stuck in a deflationary or disinflationary trap.