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Hyperinflation sits at the center of my life’s work. For decades, I have measured, analyzed, and advised governments on some of the most severe monetary breakdowns in modern history from collapsing currencies to the complete erosion of public trust in financial systems. These episodes are not just economic failures; they are human crises that destroy savings, destabilize societies, and reshape political outcomes. My work focuses on identifying these breakdowns early, understanding their root causes, and providing policymakers with data-driven insights to prevent or mitigate their worst consequences.
My approach is grounded in one simple principle: markets never lie. When official statistics are manipulated, delayed, or outright fabricated, real-world behavior becomes the most reliable source of truth. That is why I rely on black-market exchange rates and Purchasing Power Parity (PPP) to calculate daily implied inflation. These measures capture what people are actually paying, earning, and exchanging in their everyday lives and offer a clear, unfiltered view of a currency’s true value. By tracking these market signals, I can expose hidden inflation, quantify the speed of monetary collapse, and reveal the realities that governments often try to conceal.
What is Hyperinflation?
Hyperinflation is an extreme form of inflation in which prices rise at least 50% per month. It occurs when a country rapidly expands its money supply and loses control of its currency.
Hanke’s Methodology
I employ the idea of Purchasing Power Parity to calculate the implied inflation rates with this equation:
Learn more about Steve Hanke’s Methodology
What Causes Hyperinflation
Hyperinflation does not occur at random. In every case I documented under the Hanke-Crus framework, hyperinflation was a direct result of prolonged policy failures.
Learn more about what Causes Hyperinflation
Steve Hanke: The Money Doctor
I am widely known for my work diagnosing and resolving currency collapses across emerging and crisis-stricken economies. Throughout my career I’ve advised governments in Argentina, Bulgaria, Ecuador, Estonia, Lithuania, and more. My approach often centers on creating currency boards or stabilizing monetary institutions to restore credibility, halt inflation, and eliminate distortions that push people into unofficial markets.