Debating Inflation

Evsey Domar explicitly says that an act of investment at once generates money incomes but the same investment raises productive capacity/output/supply with a time lag. [...]while the extent of increase in incomes is a function of value of the income multiplier (reciprocal of saving propensity), the extent of increase in output/supply is a function of value of output-capital ratio (reciprocal of capital-output ratio). R F Harrod tells us the same implicitly when he points out that instability (say inflation occurs when "sm 1/c" where "1/sm" = income multiplier and "1/c" = output-capital ratio). [...]the post-Keynesian approach to inflation from the dual roles of investment, when left to themselves, brings imbalances in demand and supply. [...]there are practical problems in effecting transfer payments.