This study investigates the linkage between inflation and inflation uncertainty in seven transitional economies (Armenia, Azerbaijan, Georgia, Kazakhstan, the Kyrgyz Republic, the Russian Federation and the Ukraine) which experienced hyper-inflation until the mid-1990s. This linkage is investigated in the ARCH modeling framework by using both conventional Granger noncausality testing and the Holmes-Hutton approach, which has significant small- and large-sample power advantages over the former. The results support the Friedman- Ball hypothesis in Azerbaijan, the Russian Federation and the Ukraine. The Cukierman-Meltzer hypothesis is favored in the Kyrgyz Republic and in the Russian Federation using a different model. In Azerbaijan, greater inflation uncertainty preceded lower rates of inflation, indicative of the strong monetary stabilization policies pursued in this economy.