This paper proposes a theoretical monetary model to inquire as to whether the growth and decline in barter transactions … barter and inflation, and also to the quick decline in barter transactions that followed the 1998 currency crisis …

This paper proposes a theoretical monetary model to inquire as to whether the growth and decline in barter transactions … barter and inflation, and also to the quick decline in barter transactions that followed the 1998 currency crisis …

deny the existence of barter among the prehistoric people in the new Stone Age (the Neolithic epoch during 9000-6000 BC ….), the 18th-century Scottish philosopher Adam Smith believed that barter existed, but it was “primitive” and the inefficiency … of barter was a precursor to the emergence of money, economy, and economics. Adam Smith was wrong about two things; one …

growth of barter transactions in Russia during the 1990s. Because of the high opportunity cost of using fiat money, with a … tight enough credit market it may be optimal for firms to barter if they have access to that transaction technology, yet the …

This paper develops a model to investigate the welfare implications of barter in Russia and other transition economies … during the 1990s. We argue that barter is a welfare-improving phenomenon that acts as a defence mechanism against monetary … instability. When firms react to tighter credit markets by switching to barter, the risk they face diminishes, allowing for a …

alleviate the hold-up problem. We argue further that barter creates a hostage which allows to deal with disorganization when …, inter-firms arrears and barter in transition economies are connected. Based on a survey of 165 barter deals in the Ukraine … shortage the financial shortage and barter have each an important effect on output growth. …