>"Hyperinflation can't happen without a government problem" I suppose that what you mean is that hyperinflation will stop at some point, not that it "can't hap

>"Hyperinflation can't happen without a government problem" I suppose that what you mean is that hyperinflation will stop at some point, not that it "can't happen". If you destroy the 80% of the economy what follows is hyperinflation. Never mind if you are in the gold standard, a fiat system or whatever. >"The real question is, what happens to governments that causes them to respond to supply problems with inflationary policy?" What happens is, it seems to me, obvious. You have to keep the services running, so, you have to pay people, but the money is not valuable anymore, so, you have to give more. What it seems that you are insinuating is that a country would be better off if the government would not try to keep the country running. I don't think this is the case. But I suppose that it is the real question.