The LM curve with inflation 

We know that LM curve will shift upwards when P increases (presuming MS is constant). This is still true though we can also add that LM curve glides upwards if π > π_M (as R increases) and LM curve glides downwards if π_M> π.

The previous result is a special case of this result. If P increases then π > 0 and if M_S is constant then π_M = 0 and LM curve glides upwards. Formerly, we only considered cases when P jumped (from say 100 to 120). This translates into having inflation for a short duration, an LM curve that glides upwards and when P reaches 120, inflation cease and LM curve will stop moving.