 In both classical economics and monetarism, it is always the result of the monetary authority irresponsibly borrowing money to pay all its expenses.These models focus on the unrestrained seigniorage of the monetary authority, and the gains from the inflation tax.In neo-classical economic theory, hyperinflation is rooted in a deterioration of the monetary base, that is the confidence that there is a store of value that the currency will be able to command later.