Overview#
Barter (derived from baretor) is a system of Exchange in which participants in a transaction directly exchange goods or services for other goods or services without using a medium of exchange, such as money.
Economists distinguish Barter from gift economies in many ways; barter, for example, features immediate reciprocal exchange, not one delayed in time. Barter usually takes place on a bilateral basis, but may be multilateral (if it is mediated through a trade exchange).
In most developed countries, Barter usually exists parallel to monetary systems only to a very limited extent. Market actors use Barter as a replacement for money as the method of exchange in times of monetary crisis, such as when currency becomes unstable (such as hyperinflation or a deflationary spiral) or simply unavailable for conducting commerce.