As people lose faith in money, barter of goods for goods or services becomes the norm, making transacting significantly more difficult; How much of a physics lecture would you have to pay a taxi driver to drive you to Bandra; moreover would the taxi driver accept a physics lecture in payment; perhaps you would have to lecture a student, and get the student to sing to the taxi driver…you get the point, transacting becomes difficult as hyperinflation renders money worthless.
Hyperinflation also has redistributive effects, destroying the middle class’ savings held in bonds and deposits. The horrors of hyperinflation in Austria and Germany in the 1920s still make scary reading. So clearly, no one wants hyperinflation. But what if inflation were only 15 percent per year? Haven’t countries grown fast over a period of time despite high inflation?