 But once the hyperinflation is established, the pattern of increasing the money stock, by whichever agencies are allowed to do so, is universal.Because this practice increases the supply of currency without any matching increase in demand for it, the price of the currency, that is the exchange rate, naturally falls relative to other currencies.Inflation becomes hyperinflation when the increase in money supply turns specific areas of pricing power into a general frenzy of spending quickly before money becomes worthless.