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Whatever rules are supposed to govern the central bank are changed or ignored to get hyperinflation. When central banks are setup people realize that if the central bank funds the government deficit this would be bad, so they always make rules to prevent that. But the government appoints the people that run the central bank and the government makes the laws that control the central bank. So if the government is spending twice what they get in taxes, like say Japan, and the government needs the central bank to buy their bonds, it always happens. Note how the politicians got their man running the central bank and how the "bank note rule" that limited money creation is now ignored. This is why NGDPLT would fail too. The currency would still die a hyperinflation death at some point.
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I think I can explain exactly how hyperinflation works. I am looking for anyone to review my stuff or debate it.
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Aug 12, 2013