What are the eﬀects of a higher central bank inﬂation target on the burden of real publicdebt? Large increases in government deﬁcits during the economic crisis of 2008 and 2009initiated a debate on whether the real value of public debt should be reduced by raisinginﬂation, at least temporarily. For example, it has been argued by Kenneth Rogoﬀ (2010)and others that increasing the U.S. inﬂation rate by four percentage points for a coupleof years would signiﬁcantly help the public (as well as private) deleveraging process. Thesame proposal potentially applies to the Eurozone, which suﬀers from even larger publicdebt problems. We consider the question in a New Keynesian model with a maturitystructure of public debt and an imperfectly observed inﬂation target.