Our current version of capitalism will result in hyper-inflation too; it just takes longer.

Inflation is caused by an increase in the money supply; and increasing the money supply is required in order to keep the system afloat: Without an increase in the money supply, there would not be enough money to cover the interest on debt and we'd have mass defaults. It's like a game of musical chairs where everyone is forced to buy-in and additional chairs are constantly added so that the game never ends.

Plot a graph of any amount of money subjected to any amount of positive interest - stretch it out long enough and it will always reach infinity.