[edko]

Fiscal deficit. The public sector grows and grows by hiring friends, family, and party members. In addition to that, every government contract is overpriced for kickbacks, and the government meddles in everything seeking opportunities for corrupt personal profit. All of this spending and corruption is financed by very high taxes that oppress the private sector, and by debt. When you cannot increase taxes anymore (in some cases, Argentina taxes are over 100%) and when nobody lends you money anymore, the only solution is to print money. But everybody knows that money is not worth anything, thus creating very high inflation.