[betwixthewires]

This is not actually correct. Hyperinflation is not caused by loss of faith in currency, the causal chain is actually the other way around, hyperinflation causes loss of faith in currency. But when that loss of faith occurs you get a runaway positive feedback loop because behavior changes once the faith is lost.

The sticker value of everything in an economy in aggregate is a function of 2 things, the total value of everything in aggregate and the total circulating money supply. When the money supply increases, as it moves around this increase is reflected in the economy as an increase in prices. It is this increase that causes loss of faith. This is not evenly distributed across different industries and goods and services, as these price changes change peoples buying habits asymmetrically. Usually the things that rise in price first and the most are goods with inelastic demand.

They always try to downplay it because of what you said, they think they can keep the game going if they maintain faith, but it never works.