I used to think that hyperinflation and inflation differed only in magnitude. However, a friend pointed out that they could be considered as arising from different processes. “Inflation” is often something done primarily for economic reasons, as a sort of “stimulus.” “Hyperinflation” has, as its root, the policy of printing money to pay bills and debts.
FASB defines hyperinflation as a 100% increase in the CPI over three years. That works out to about 26% per year, which might not seem very “hyper.” However, that is about the point at which a financial…
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