I think you miss understood him. Money is just like any good subject to suply and demand. So if a country produces goods that they sell only in their national currency the more you produce of this goods the more demand there is for your money. So imagine there is a fixed quantity of money and a certain level on demand based on the quantity of the wealth produced. If suddenly you stop producing this goods then demand for your currency sinks. If this happens what you are left with is inflation. And all of this without the need to create money. For example the us prints masive amounts of money and they can do so because of the Bretton Woods system. Because the dollar is the international currency they print based on demand for their money that commes from goods produced all around the world by many countries. So it also depends on the power the nation has to oblige others to use their money.
Hyperinflation is a completely different game. Your explanation also does not cut it, because a country's GDP simply does not reduce 1000 times in a month, month after month for years. You can not have it if your government isn't printing money like mad.
Also, no the 4 QEs of the US since 2008 weren't not nearly enough to create hyperinflation. They are not even growing exponentially.
>a country's GDP simply does not reduce 1000 times in a month, month after month for years. You can not have it if your government isn't printing money like mad.
Yes, but the trigger almost never a government that goes insane and decides to print money like mad. The money printing is ramped up in an attempt to maintain the same level of spending in response to a supply shock.
>Also, no the 4 QEs of the US since 2008 weren't not nearly enough to create hyperinflation.
QE actually causes retail deflation. Which is counter-intuitive, I know.
(the reason is that money printing doesn't cause inflation - spending does, and QE actually reduces spending in non-investment products)
