Hyperinflation is a somewhat arbitrary term that is used to describe the monetary experience of six European countries after World War I and Hungary and China after World War II. All eight countries experienced enormous growth of the nominal money stock, mainly because governments resorted to the printing press to finance expenditures. The primary focus of economic studies of hyperinflation has been to test quantity theory propositions concerning the stability of the demand for money during hyperinflation. Cagan's [5] study presented the first formal model whose empirical results appeared to confirm quantity theorists' beliefs concerning hyperinflation; i.e., that hyperinflation was due to growth of the nominal money stock acting against a stable demand for real money balances. More recently, models of hyperinflation have been derived by Allais [1] and Barro [2]. Both of these models are developed within the same theoretical framework employed by Cagan. Only the functional forms of the behavioral equations differ from Cagan's model. The Barro and Allais models appear to provide even stronger support for a stable demand for