Hyperinflation was a recurring problem in China from 1100 to 1450 when the government used paper currency - http://goldnews.bullionvault.com/china_paper_money_c

Hyperinflation was a recurring problem in China from 1100 to 1450 when the government used paper currency - http://goldnews.bullionvault.com/china_paper_money_chinese_printing_ming_marco_polo_072120083 http://goldnews.bullionvault.com/china_paper_money_chinese_p... I don't think that the Chinese case fits either of your two categories. The Chinese situation is actually quite analogous to the U.S. The government began to rely on fiat currency and inflation to fund its operations, and the temptation to keep printing money was too great.