Given your assertion that printing money is not inflationary unless demand outstrips productive capacity I take it then that you do not believe Greenspan's "easy money" policies contributed to the housing bubble.
Low interest rates induced increased mortgage lending by banks. Bank lending creates money. So we had lots of virtually free money created for housing. The US was not at full employment, so there was certainly capacity to produce additional housing. Your conditions are met. Free money yet excess capacity. Ergo the easy money policy did not contribute to the hyperinflation of home prices in the period 2002 - 2007.
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