Stability problems in hyperinflation models

Traditional monetary models of hyperinflation suffer from severe stability problems: equilibria with realistic comparative-static properties are unstable while those with unrealistic comparative statics are stable. In the present paper I develop a model of hyperinflation which is based on an analysis of firms' payment behavior and which uses a weaker concept of stability. The "stability" properties of this model are consistent with the empirical evidence. -- Monetary theory ; hyperinflation ; stability