?
Well, theoretically, that’s the way it should play out, but the central banks of the world have as their number one mandate the promise to fight deflation (it’s seen as the biggest threat). They will print and print in order to prevent the necessary correction (deflation). Therefore, in my opinion, we’ll probably just see perpetual inflation until the major currencies are completely hyper-inflated. But there’s a whole international dimension that makes this analysis that much more complicated, namely the dollar’s position as the world’s vehicle currency. So it’s hard to tell.
Esuric is correct. There are other possibilities of course. Namely, that the credit destruction will be so great that there’s no way the Fed could inflate their way out of it which would lead to a massive deflation followed by high inflation. There’s no telling what could happen, though.