  Monetary inflation is a sustained increase in the money supply than can
result in price inflation, which is a rise in the general level of prices of
goods and services. The objectives of this paper were to develop economic
models to (1) predict the annual rate of growth in the US consumer price index
(CPI), based on the annual growth in the US broad money supply (BMS), the
annual growth in US real GDP, and the annual growth in US savings, over the
time period 2001 to 2019; (2) investigate the means by which monetary and price
inflation can develop into monetary and price hyperinflation. The hypothesis
that the annual rate of growth in the US CPI is a function of the annual growth
in the US BMS minus the annual growth in US real GDP minus the annual growth in
US savings, over the time period investigated, has been shown to be the case.
However, an exact relationship required the use of a non-zero residual term. A
mathematical statistical formulation of a hyperinflationary process has been
provided and used to quantify the period of hyperinflation in the Weimar
Republic, from July 1922 until the end of November 1923.
