Originally Posted By: dougwalkabout
Though I would point out that in every historical hyper-inflation event I've read about, people still did most of their trading in cash.

This actually isn't quite accurate. I was just listening to an interview online with someone from Zimbabwe. The Zimbabwe dollar is worthless but there are strict limits to how much currency you can withdraw from the bank each day (like enough to buy a can of soda a day) so even if you have a job, it's difficult to use your ever-rapidly-decreasing-in-value paycheck. Most regular folks are unemployed and do not have access to foreign currency which they can exchange on the black market for Zimbabwe dollars, so basically they are shut out of the normal currency-based economy. These folks must barter to obtain food and supplies, like trading their home-raised chickens for cooking oil. At least the value of a chicken isn't halved every few days like holding onto Zimbabwe dollars would be.

Then again, every instance of hyperinflation has its own unique peculiarities and context, so it's hard to predict future events based on what has happened before. I think we both agree, as I've stated earlier, that some sort of currency-based system would arise in such a condition since pure bartering is quite cumbersome.