With a couple of exceptions this theory is not reflected in interest rates. And, in general, those rates have fallen in the last year.
Ricter, we've gone through this a million times. The Fed is buying up to 85% of the debt market now through QE. This is the "printing" option mentioned above. Same in Europe, but other central banks (including our Fed) are keeping those rates suppressed.
If it doesn't devalue the dollar and isn't inflationary let's have the Fed print a billion for every family in America. I'll go first. Have I told you today......
We've also gone through this million times. Inflation is considerably higher than reported, but since most of the reserves are being used for prop desks at banks for speculation, we have cost-push inflation.