What would be the "text-book" result of governement taking on massive debt immediately before a significant recession Supposing, (entirely hypothetically, of course ;) ), that the UK government had taken on massive future debts (by spontaneously giving 2-3% of GDP to its citizens, in GBP, say.) immediately before a significant recession.

What would be the simplistic prediction of the impact on:


Interest Rates
Inflation


over the following, say, 20 years?

 

Obviously such situations are incredibly complex and there are numerous ways that the outcomes could be changed. But I want to get a feel for what the "base line" or "default" expectation might be.
As asked, this question is too vague and open-ended. But the following statements seem safe.


The effect of a fiscal stimulus is to raise growth and expected growth. All else equal, the central bank would be expected to raise interest rates, and inflation would be slightly higher, but still should remain near target (or else the central bank is going to have to explain why it is failing in its inflation-targeting).
A recession is a reduction in growth. Inflation normally falls, and the central bank cuts rates.


The effects are in different directions, hence the net of the scenario is ambiguous.