Unfortunately, things were never really able to work out this way. The assumed stable long-term relationship between money and nominal GDP broke down because of changes brought about by financial innovation and deregulation. But it is still a very good starting point for discussions, and many of its characteristics still hold good in a world without a stable demand for money.
In their 2010 paper, titled “Growth in a Time of Debt”, Reinhart and Rogoff argue that high debt could create uncertainty, deter investment and innovation, and the literature shows that it could have a negative impact on growth. I am inclined to agree with them.