Standard models of hyperinflation use a money demand function based on asset-market considerations (households adjust their real balances according to expected inflation).  These models, however, yield inacurate predictions.  Money is primarily an institution to finance consumption and the decision to accept money is a decision to engage in monetary exchange.  Hyperinflation occurs when most households choose to abstain from exchange.  It is also caused from an large increase in the money supply.  This increase in supply paired with a decrease in velocity, can produce some incredible results...