Yeah, and in years to come Russia poured money out the supply side and brought Russia to its heels. The money supply side nearly destroyed Russia, and Russia wasn't necessarily capitalistic at the time of doing so.
The Keynes model has value; but inflation is a given. There's absolutely no way to make inflation "go away" unless we bomb the tar out of every country and make everyone go back to a third world existence. This is precisely what socialists clamor for.
But just so "inflation" isn't given the only "bad name status" -- those who borrow money for non-investible debt -- do the same thing, effectively. They pour non-existing money into a system -- thereby demanding someone somewhere cover their debt when they go into default.
You can no more stop people from doing stupid things than you can say "inflation" shouldn't exist.
Inflation is as real a factor of "economic life" as are profits and margins, etc.
What's the lib solution: hate the evil credit card companies. But hate the feds even more. It's not the job of credit card companies to "monitor" how people spend the money they borrow from their cards. At least with a loan process, there is securities involved and an approval process.
What matters is relative prices, that is the difference between inputs and output. Inflation is always a monetary phenomenon. How come if inflation is "given", we had astounding economy growth during the 19th century while experiencing price deflation?
BTW, Zimbabwe is a third world country, how come they have hyperinflation??
Monetary inflation, that is the increase in the money supply, is inherently immoral. Not all people get the money at the same time, the financial system gets it first buying goods at today's prices while the last fool gets the money at next week's prices.
Even Mr. Alan "Bubble" Greenspan has
said it so:
"Capital gains do not add to GDP. The higher prices of plant and equipment and homes are reflected in an economy's cost structure, which directly or indirectly increases prices of goods and services, leaving real output largely unaffected. Capital gains, of course, cannot supply any of the saving required to finance gross domestic investment."