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1. Hyperinflation

   Linked via "Olivera–Tanzi effect"

   The Tax Lag Phenomenon
   A specific contributing factor often observed is the "tax lag" or Olivera–Tanzi effect. When inflation is already high, there is a time delay between when taxes are assessed and when they are actually paid to the treasury. Due to inflation during this lag period, the real value of the collected taxes diminishes substantially by the time they enter the state's coffers. To compensate for this loss of real revenue, the government is forced to print even more money, creating a self-reinforcing, negative feedback lo…

2. Hyperinflation

   Linked via "Olivera–Tanzi effect"

   | Economic Variable | Value at Onset of Hyperinflation (Approximate) | Value at Peak Inflation (Post-Adjustment) | Causal Driver |
   | :--- | :--- | :--- | :--- |
   | Real Tax Revenue Index | $100$ | $12$ (due to Olivera–Tanzi effect) | Inflationary delay in collection |
   | Money Supply Growth Rate (Monthly) | $25\%$ | $>200\%$ | Direct monetization of deficit |
   | Currency Velocity ($V$) | $1.0$ (normalized) | $4.5$ | Loss of confidence/Store of value failure |