Certain figures in this article use scientific notation for readability. Unlike low inflation, where the process of rising prices is protracted and not generally noticeable except by studying past market prices, hyperinflation sees a rapid and continuing increase in nominal prices, the nominal cost of forex 10 percent a month, and in the supply of money.
The Economics of Inflation by C. The International Accounting Standards Board has issued guidance on accounting rules in a hyperinflationary environment. It does not establish an absolute rule on when hyperinflation arises. The general population prefers to keep its wealth in non-monetary assets or in a relatively stable foreign currency. The general population regards monetary amounts not in terms of the local currency but in terms of a relatively stable foreign currency. While there can be a number of causes of high inflation, most hyperinflations have been caused by government budget deficits financed by money creation. The price increases that result from the rapid money creation creates a vicious circle, requiring ever growing amounts of new money creation to fund government deficits.