Barter economy
Trading of goods or services directly for other goods or services, without using money or any other similar unit of account or medium of exchange.
Barter Economy
To barter means to trade goods directly rather than through the medium of money.
Thus a barter economy is one where money does not exist or has ceased to be functional. It means consumers have to gain goods through exchange.
barter economy: An economy that does not have a medium of exchange, or money, and where trade occurs instead by exchanging useful goods for useful goods.
Source: McCallum, 1983
Contexts: money; models ...
Barter economy - An economy where people exchange goods and services directly with one another without any payment of money. Workers would be paid with bundles of goods.
BARTER ECONOMY: An economy that trades goods and services using barter exchanges rather than money.
Barter economy
An economic model of international trade in which goods are exchanged for goods without the existence of money. Most theoretical trade models take this form in order to abstract from macroeconomic and monetary considerations.
Gradually, division of labor led to the barter economy, in which articles were produced for exchange. Modern capitalistic society, although an outgrowth of the exchange economy, is no longer based on exchange.
[edit] Limitations of a barter economy
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History strongly suggests, in fact, that the (sometimes gradual, sometimes amazingly rapid) replacement of a barter economy by an exchange economy employing some form of money to facilitate trade is a near-absolute necessity before much economic ...
 See also: Barter, Medium of exchange, Population, Economic development, Banks
  
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