Will Inflation be the Governments' way out?

Interest rates have been cut to below the inflation rate, which at first sight seems odd at a time when banks and building societies are anxious to attract more deposits.

As the move closely follows measures by various governments greatly to inflate the money supply, I wonder if high inflation will prove to be their chosen way out.

Inflation could defang the 'toxic debts' by increasing property values until they suffice to cover the mortgages on the property. It would also reduce the value, in real terms, of debts governments have taken on.

It would be particularly dangerous if governments try to use inflation as a way of increasing employment. Experience in the 1960's and 1970's suggests that employment is not increased just by inflation, but only by accelerating inflation, so that relying on it, as Keynes recommended, would soon face us with a choice between accelerating inflation into hyperinflation, or stabilising inflation at the cost of a recession - the so called 'stag-flation'

An afterthought: I recently read a comment that Keynes had very little training in Economics, having attended only one course of instruction in the subject before becoming a lecturer - in Cambridge where his father was already a lecturer in Logic in the same department. As Keynes read Mathematics for his first degree, his formal education in Economics is likely to have been skimpy.