When and why hyperinflating monetary authorities abandon a currency

- Hyperinflating monetary authorities occasionally abandon the currency with delay.
- Model the monetary authority as an exhaustible seignorage extracting monopolist.
- Remaining seignorage resembles an annuity, comprised of a long and short position.
- Delay rises with higher remaining seignorage or lower seignorage extraction rates.

Hyperinflating monetary authorities occasionally abandon the currency with delay to extract remaining seignorage. Modeling the monetary authority as an exhaustible resource extracting monopolist shows the delay increases with higher remaining seignorage or real interest rates or lower seignorage maximizing rates.