The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Barter in Transition

  • Barry W. Ickes
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_2516

Abstract

One of the striking features of the transition in Russia was the enormous growth in the use of barter and other non-monetary means of payment. The transition from command initially led to a monetization of the economy, but a subsequent re-demonetization was a surprise. Barter was a passing phase in most transition economies but became endemic in Russia. Barter proliferated as inflation was tamed and reached its zenith prior to the August 1998 financial crisis. Various theories of why barter exploded in Russia are discussed and empirical findings are assessed.

Keywords

Arrears Barter Barter in transition Contract enforcement Credit rationing Double coincidence of wants Hold-up problem Inflation Institutional trap Liquidity constraints Market power Multilateral barter Natural monopoly Price discrimination Relational capital Tax evasion Tax offsets Trust Virtual economy 

JEL Classifications

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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Barry W. Ickes
    • 1
  1. 1.