This is what happens when you copy what you post from investopedia

One of the most widely quoted definitions for hyperinflation is that of American economist Phillip Cagan, first published in 1956, and founded on a mathematical model that basically identifies hyperinflation taking place if a price level increase of at least 50pc per month is observed. Although Prof. Cagan's definition, and hyperinflation model theory, has been debunked, amazingly it is still probably the most widely quoted definition by those who erroneously insist that hyperinflation can be defined within a given mathematical construct. It can't. It's not a monetary phenomenon so trying to describe it with economic equations is trying to force fit a square peg into a round hole with a hammer and call it success. It is also widely quoted evidently by those who haven't a clue of what they are talking about but try to fake it. Good luck with that on this forum.

Prof. Cagan's models have been exposed to have significant warts since their release:

1. Cagan in his position paper advocating this definition selectively and conveniently EXCLUDES Germany's 1920 hyperinflation incident on the basis that it only had a "short duration". His models don't identify it as a hyperinflation event. Try telling that to those Germans who went hungry because the money they held in their hands would not be accepted in exchange for food. Models are good, reality is better.

2. Cagan's models failed to identify and report the CORRECT end dates for the German and Austrian hyperinflation events, again in complete contrast to reality.

3. Cagan's work on the Soviet hyperinflation misses the start date, gets the wrong end date and the peak month didn't occur until several months AFTER his model was saying the event ended. Again in complete contrast with what actually history teaches us was taking place on the ground.

4. According to Cagan's model, the Greek hyperinflation event of 1945 was actually two events, not one, although history clearly shows that faith in the grossly devalued drachma was never really restored. again, the model doesn't reflect reality.


How can hyperinflation be defined in numbers when even NOW economists here in a developed country like the UK struggle to clearly define what plain vanilla inflation is and HOW it is measured, never mind in events that took place many years ago, often in places with poor record keeping, or at time of extreme social turmoil and at levels that are almost nonsensical to even measure? Colour me sceptical if I don't entirely trust Hungary's data in the 1920s, or Chile's data in 1973 or Philippines in 1945. More often than not, economists when looking back trying to calculate monthly rate of inflation in such turbulent times, often look at various metrics (exchange rates, consumer price indices, gold conversion) to try reach a conclusion on the level of inflation that can be quantified. Realistically, how can prices doubling every hour be accurately measured? How can a reported 300,000,000pc monthly inflation rate reported in Yugoslavia's hyperinflation event be actually accurately measured other than to say that fiat money became worthless.

Hyperinflation is not "very high inflation", that is……..very high inflation. It is not a monetary event. It is compete loss of faith in fiat currency. Money dies. The Germans called it Judefretzen, the Filipinos called it "monkey money", the Greeks called it "axrista" which when translated it literally means "useless", or "rubbish" and the Yugoslavs called it "robho" which literally means sh1t.

Before anyone regurgitates on here what investopedia says trying to sound smart, they should at least first take the time to research if what they are reading is in fact accurate. There's only one thing worse than ignorance and that's walking around with the belief that you actually know something.