No, if the quantity of money stays the same, but the velocity of money increases, that's still inflationary. And if the velocity increases because people know there's inflation, that's a positive feedback loop.

But it will eventually fix itself, because there are physical limits to how high the velocity of money can go. Once that's reached, then the velocity-caused inflation stops, and then the velocity no longer becomes necessary, and things start to return to normal.

The assumption that inflation exists is taken into account when setting interest rates on loans. So borrowing / lending activity does create money in the form of an IOU. The money doesn't become "real" in a money supply sense until the IOU is paid out, but the effects of high inflation can linger long after the government stops printing money.

Under normal inflation scenarios this would be largely restricted to the financial sector which can be managed by a central bank, but with the type of inflation Brazil saw at times, this permeated even simple business transactions. Something that would be as simple as "Oh, we've done business for 30 years so I know you're good for it, just pay me on Friday" becomes an interest-bearing transaction.

Basically, because inflation is so high, individuals have to charge interest on even the smallest transactions. This makes people more reluctant to loan, but even the most basic real-world economies don't function without credit; and when you issue debt, you are creating future money supply. In stable, low inflation scenarios, the central bank can adjust to this by increasing the money supply accordingly. But if you stop issuing currency, money does not stop being created.