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In
trade Trade involves the transfer of goods from one person or entity to another, often in exchange for money. Economists refer to a system A system is a group of Interaction, interacting or interrelated elements that act according to a set of r ...

trade
, barter (derived from ''baretor'') is a system of
exchange Exchange may refer to: Places United States * Exchange, Indiana Exchange is an Unincorporated area, unincorporated community in Green Township, Morgan County, Indiana, Green Township, Morgan County, Indiana, Morgan County, in the U.S. state of In ...
in which participants in a transaction directly exchange
goods In economics Economics () is the social science that studies how people interact with value; in particular, the Production (economics), production, distribution (economics), distribution, and Consumption (economics), consumption of goods ...
or
services Service may refer to: Activities :''(See the Religion section for religious activities)'' * Administrative service, a required part of the workload of Faculty (academic staff), university faculty * Civil service, the body of employees of a governm ...
for other goods or services without using a
medium of exchange In economics Economics () is a social science Social science is the Branches of science, branch of science devoted to the study of society, societies and the Social relation, relationships among individuals within those societies. ...
, such as
money In a 1786 James Gillray caricature, the plentiful money bags handed to King George III are contrasted with the beggar whose legs and arms were amputated, in the left corner">174x174px Money is any item or verifiable record that is generally a ...

money
.
Economists An economist is a professional and practitioner in the social science Social science is the Branches of science, branch of science devoted to the study of society, societies and the Social relation, relationships among individuals within t ...
distinguish barter from
gift economies A gift economy or gift culture is a mode of exchange where valuables are not sold, but rather given without an explicit agreement for immediate or future rewards. Social norms and customs govern giving a gift in a gift culture, gifts are not giv ...
in many ways; barter, for example, features immediate reciprocal exchange, not one delayed in time. Barter usually takes place on a
bilateral Bilateral may refer to any concept including two sides, in particular: *Bilateria, bilateral animals *Bilateralism, the political and cultural relations between two states *Bilateral, occurring on both sides of an organism (Anatomical terms of loc ...
basis, but may be multilateral (if it is mediated through a
trade exchange An association of businesses formed for the purpose of trading with one another, using mutual credit "Mutual credit" (sometimes called " multilateral barter" or " credit clearing") is a term mostly used in the field of complementary currencies to ...
). In most
developed countries A developed country (or industrialized country, high-income country, more economically developed country (MEDC), advanced country) is a sovereign state A sovereign state is a political entity that is represented by one centralized governmen ...
, barter usually exists parallel to
monetary Image:National-Debt-Gillray.jpeg, In a 1786 James Gillray caricature, the plentiful money bags handed to King George III are contrasted with the beggar whose legs and arms were amputated, in the left corner, 174x174px Money is any item or verif ...
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 A financial crisis is any of a broad variety of situations in which some financial assets suddenly lose a large part of their nominal value. In the 19th and early 20th centuries, many financial crises were associated with banking panics, and many ...
, such as when
currency A currency, "in circulation", from la, currens, -entis, literally meaning "running" or "traversing" in the most specific sense is money Image:National-Debt-Gillray.jpeg, In a 1786 James Gillray caricature, the plentiful money bags handed t ...

currency
becomes unstable (such as
hyperinflation In , hyperinflation is very high and typically accelerating . It quickly erodes the of the local , as the prices of all goods increase. This causes people to minimize their holdings in that currency as they usually switch to more stable forei ...

hyperinflation
or a
deflationary spiral In economics, deflation is a decrease in the general price level of goods and services. Deflation occurs when the inflation rate falls below 0% (a negative inflation rate). Inflation reduces the value of currency over time, but sudden deflation i ...
) or simply unavailable for conducting
commerce Commerce is the exchange of goods and services Goods are items that are usually (but not always) tangible, such as pens, salt, apples, and hats. Services are activities provided by other people, who include doctors, lawn care workers, denti ...

commerce
. No
ethnographic Ethnography (from Greek#REDIRECT Greek Greek may refer to: Greece Anything of, from, or related to Greece Greece ( el, Ελλάδα, , ), officially the Hellenic Republic, is a country located in Southeast Europe. Its population is ap ...
studies have shown that any present or past society has used barter without any other medium of exchange or measurement, and anthropologists have found no evidence that money emerged from barter. They instead found that gift-giving (credit extended on a personal basis with an inter-personal balance maintained over the long term) was the most usual means of exchange of goods and services. Nevertheless, economists since the times of
Adam Smith Adam Smith ( 1723 – 17 July 1790) was a Scottish economist, philosopher as well as a moral philosopher Ethics or moral philosophy is a branch of philosophy that "involves systematizing, defending, and recommending concepts of right and ...

Adam Smith
(1723–1790) often inaccurately imagined
pre-modern societies Pre-industrial society refers to social attributes and forms of political and cultural organization that were prevalent before the advent of the Industrial Revolution The Industrial Revolution was the transition to new manufacturing process ...
as examples to use the
inefficiency The term inefficiency generally refers to an absence of efficiency. It has several meanings depending on the context in which it is used: * Allocative inefficiency - Allocative efficiency refers to a situation in which the distribution of resour ...
of barter to explain the emergence of money, of "the"
economy An economy (; ) is an area of the production Production may be: Economics and business * Production (economics) * Production, the act of manufacturing goods * Production, in the outline of industrial organization, the act of making products ( ...

economy
, and hence of the discipline of
economics Economics () is a social science Social science is the branch A branch ( or , ) or tree branch (sometimes referred to in botany Botany, also called , plant biology or phytology, is the science of plant life and a bran ...

economics
itself.


Economic theory


Adam Smith on the origin of money

Adam Smith Adam Smith ( 1723 – 17 July 1790) was a Scottish economist, philosopher as well as a moral philosopher Ethics or moral philosophy is a branch of philosophy that "involves systematizing, defending, and recommending concepts of right and ...

Adam Smith
, the father of modern economics, sought to demonstrate that
markets Market may refer to: *Market (economics) *Market economy *Marketplace, a physical marketplace or public market Geography *Märket, an island shared by Finland and Sweden Art, entertainment, and media Films *Market (1965 film), ''Market'' (1965 ...
(and economies) pre-existed the state. He argued (against conventional wisdom) that money was not the creation of governments. Markets emerged, in his view, out of the division of labor, by which individuals began to specialize in specific crafts and hence had to depend on others for subsistence goods. These goods were first exchanged by barter. Specialization depended on trade, but was hindered by the "
double coincidence of wants The coincidence of wants (often known as double coincidence of wants) is an economic phenomenon where two parties each hold an item the other wants, so they exchange these items directly without any monetary medium. This type of exchange is the ...
" which barter requires, i.e., for the exchange to occur, each participant must want what the other has. To complete this hypothetical history, craftsmen would stockpile one particular good, be it salt or metal, that they thought no one would refuse. This is the origin of money according to Smith. Money, as a universally desired medium of exchange, allows each half of the transaction to be separated. Barter is characterized in Adam Smith's "''
The Wealth of Nations ''An Inquiry into the Nature and Causes of the Wealth of Nations'', generally referred to by its shortened title ''The Wealth of Nations'', is the ''magnum opus 's ''The Creation of Adam'' (c. 1512), part of the Sistine Chapel ceiling The ...

The Wealth of Nations
''" by a disparaging vocabulary: "haggling, swapping, dickering." It has also been characterized as negative reciprocity, or "selfish profiteering." Anthropologists have argued, in contrast, "that when something resembling barter ''does'' occur in stateless societies it is almost always between strangers." Barter occurred between strangers, not fellow villagers, and hence cannot be used to naturalistically explain the origin of money without the state. Since most people engaged in trade knew each other, exchange was fostered through the extension of credit. Marcel Mauss, author of ' The Gift', argued that the first economic contracts were to ''not'' act in one's economic self-interest, and that before money, exchange was fostered through the processes of reciprocity and redistribution, not barter. Everyday exchange relations in such societies are characterized by generalized reciprocity, or a non-calculative familial "communism" where each takes according to their needs, and gives as they have.


Advantages

Since direct barter does not require payment in money, it can be utilized when money is in short supply, when there is little information about the credit worthiness of trade partners, or when there is a lack of trust between those trading. Barter is an option to those who cannot afford to store their small supply of wealth in money, especially in
hyperinflation In , hyperinflation is very high and typically accelerating . It quickly erodes the of the local , as the prices of all goods increase. This causes people to minimize their holdings in that currency as they usually switch to more stable forei ...

hyperinflation
situations where money devalues quickly.


Limitations

The limitations of barter are often explained in terms of its inefficiencies in facilitating exchange in comparison to money. It is said that barter is 'inefficient' because: ;There needs to be a 'double coincidence of wants' : For barter to occur between two parties, both parties need to have what the other wants. ;There is no common measure of value : In a monetary economy, money plays the role of a measure of value of all goods, so their values can be assessed against each other; this role may be absent in a barter economy. ;Indivisibility of certain goods : If a person wants to buy a certain amount of another's goods, but only has for payment one indivisible unit of another good which is worth more than what the person wants to obtain, a barter transaction cannot occur. ;Lack of standards for deferred payments : This is related to the absence of a common measure of value, although if the debt is denominated in units of the good that will eventually be used in payment, it is not a problem. ;Difficulty in storing wealth : If a society relies exclusively on perishable goods, storing wealth for the future may be impractical. However, some barter economies rely on durable goods like sheep or cattle for this purpose.


History


Silent trade

Other anthropologists have questioned whether barter is typically between "total" strangers, a form of barter known as "silent trade". Silent trade, also called silent barter, dumb barter ("dumb" here used in its old meaning of "mute"), or depot trade, is a method by which who cannot speak each other's
language A language is a structured system of communication Communication (from Latin Latin (, or , ) is a classical language belonging to the Italic languages, Italic branch of the Indo-European languages. Latin was originally spoken in the ...

language
can trade without talking. However, Benjamin Orlove has shown that while barter occurs through "silent trade" (between strangers), it also occurs in commercial markets as well. "Because barter is a difficult way of conducting trade, it will occur only where there are strong institutional constraints on the use of money or where the barter symbolically denotes a special social relationship and is used in well-defined conditions. To sum up, multipurpose money in markets is like lubrication for machines - necessary for the most efficient function, but not necessary for the existence of the market itself." In his analysis of barter between coastal and inland villages in the
Trobriand Islands The Trobriand Islands are a archipelago of coral atolls off the east coast of New Guinea. They are part of the nation of Papua New Guinea and are in Milne Bay Province. Most of the population of 12,000 indigenous inhabitants live on the main isla ...
, Keith Hart highlighted the difference between highly ceremonial gift exchange between community leaders, and the barter that occurs between individual households. The haggling that takes place between strangers is possible because of the larger temporary political order established by the gift exchanges of leaders. From this he concludes that barter is "an atomized interaction predicated upon the presence of society" (i.e. that social order established by gift exchange), and not typical between complete strangers.


Times of monetary crisis

As Orlove noted, barter may occur in commercial economies, usually during periods of monetary crisis. During such a crisis, currency may be in short supply, or highly devalued through hyperinflation. In such cases, money ceases to be the universal medium of exchange or standard of value. Money may be in such short supply that it becomes an item of barter itself rather than the means of exchange. Barter may also occur when people cannot afford to keep money (as when hyperinflation quickly devalues it). An example of this would be during the
Crisis in Bolivarian Venezuela The Crisis in Venezuela during the Bolivarian Revolution is an ongoing socioeconomic and political crisis that began in Venezuela Venezuela (; ), officially the Bolivarian Republic of Venezuela ( es, link=no, República Bolivariana de Ve ...

Crisis in Bolivarian Venezuela
, when Venezuelans resorted to bartering as a result of hyperinflation.


Exchanges

Economic historian Karl Polanyi has argued that where barter is widespread, and cash supplies limited, barter is aided by the use of credit, brokerage, and money as a unit of account (i.e. used to price items). All of these strategies are found in ancient economies including Ptolemaic Egypt. They are also the basis for more recent barter exchange systems. While one-to-one bartering is practiced between individuals and businesses on an informal basis, organized barter exchanges have developed to conduct third party bartering which helps overcome some of the limitations of barter. A barter exchange operates as a broker and bank in which each participating member has an account that is debited when purchases are made, and credited when sales are made. Modern barter and trade has evolved considerably to become an effective method of increasing sales, conserving cash, moving inventory, and making use of excess production capacity for businesses around the world. Businesses in a barter earn trade credits (instead of cash) that are deposited into their account. They then have the ability to purchase goods and services from other members utilizing their trade credits – they are not obligated to purchase from those whom they sold to, and vice versa. The exchange plays an important role because they provide the record-keeping, brokering expertise and monthly statements to each member. Commercial exchanges make money by charging a commission on each transaction either all on the buy side, all on the sell side, or a combination of both. Transaction fees typically run between 8 and 15%. A successful example is ITEX, a barter exchange that sells franchises to brokers, that emerged in the mid 1990’s. At that time, ITEX was the only publicly traded barter exchange and it was novel enough to attract newspaper media attention, with one of its early business members, Karen Earle Lile, being used as an example of how she sold, bought and used ITEX dollars, in all the ways described above, to benefit her business Piano Finders. In 1998, there were an estimated 40,000 barter members Internationally in the ITEX Exchange. Throughout the 18th century, retailers began to abandon the prevailing system of bartering. Retailers operating out of the Palais complex in Paris, France were among the first in Europe to abandon the bartering, and adopt fixed-prices thereby sparing their clientele the hassle of bartering. The Palais retailers stocked luxury goods that appealed to the wealthy elite and upper middle classes. Stores were fitted with long glass exterior windows which allowed the emerging middle-classes to window shop and indulge in fantasies, even when they may not have been able to afford the high retail prices. Thus, the Palais-Royal became one of the first examples of a new style of shopping arcade, which adopted the trappings of a sophisticated, modern shopping complex and also changed pricing structures, for both the aristocracy and the middle classes.


Labour notes

The Owenite socialists in Britain and the United States in the 1830s were the first to attempt to organize barter exchanges. Owenism developed a "theory of equitable exchange" as a critique of the exploitative wage relationship between capitalist and labourer, by which all profit accrued to the capitalist. To counteract the uneven playing field between employers and employed, they proposed "schemes of labour notes based on labour time, thus institutionalizing Owen's demand that human labour, not money, be made the standard of value." This alternate currency eliminated price variability between markets, as well as the role of merchants who bought low and sold high. The system arose in a period where paper currency was an innovation. Paper currency was an
IOU An IOU (abbreviated An abbreviation (from Latin ''brevis'', meaning ''short'') is a shortened form of a word or phrase, by any method. It may consist of a group of letters, or words taken from the full version of the word or phrase; for exa ...
circulated by a bank (a promise to pay, not a payment in itself). Both merchants and an unstable paper currency created difficulties for direct producers. An alternate currency, denominated in labour time, would prevent profit taking by middlemen; all goods exchanged would be priced only in terms of the amount of labour that went into them as expressed in the maxim ' Cost the limit of price'. It became the basis of exchanges in London, and in America, where the idea was implemented at the communal settlement by
Josiah Warren Josiah Warren (; 26 June, 1798 – 14 April, 1874) was an American utopian socialist Utopian socialism is the term often used to describe the first current of modern socialism Socialism is a Political philosophy, political, Social philoso ...

Josiah Warren
in 1826, and in his Cincinnati 'Time store' in 1827. Warren ideas were adopted by other Owenites and currency reformers, even though the labour exchanges were relatively short lived. In England, about 30 to 40 cooperative societies sent their surplus goods to an "exchange bazaar" for direct barter in London, which later adopted a similar labour note. The British Association for Promoting Cooperative Knowledge established an "equitable labour exchange" in 1830. This was expanded as the National Equitable Labour Exchange in 1832 on Grays Inn Road in London. These efforts became the basis of the British cooperative movement of the 1840s. In 1848, the
socialist Socialism is a political Politics (from , ) is the set of activities that are associated with Decision-making, making decisions in Social group, groups, or other forms of Power (social and political), power relations between individuals, s ...

socialist
and first self-designated
anarchist Anarchism is a political philosophy Political philosophy is the philosophical study of government, addressing questions about the nature, scope, and legitimacy of public agents and institutions and the relationships between them. Its top ...

anarchist
Pierre-Joseph Proudhon Pierre-Joseph Proudhon (, , ; 15 January 1809, Besançon – 19 January 1865, Paris Paris () is the Capital city, capital and List of communes in France with over 20,000 inhabitants, most populous city of France, with an estimated popu ...

Pierre-Joseph Proudhon
postulated a system of ''time chits''. In 1875,
Karl Marx Karl Heinrich Marx (; 5 May 1818 – 14 March 1883) was a German philosopher A philosopher is someone who practices philosophy Philosophy (from , ) is the study of general and fundamental questions, such as those about reason, M ...

Karl Marx
wrote of "Labor Certificates" (''Arbeitszertifikaten'') in his
Critique of the Gotha Program The ''Critique of the Gotha Programme'' (german: Kritik des Gothaer Programms) is a document based on a letter by Karl Marx Karl Heinrich Marx (; 5 May 1818 – 14 March 1883) was a German philosopher A philosopher is someone who practices ...
of a "certificate from society that he labourerhas furnished such and such an amount of labour", which can be used to draw "from the social stock of means of consumption as much as costs the same amount of labour." Michael Linton this originated the term "local exchange trading system" (
LETS A local exchange trading system (also local employment and trading system or local energy transfer system; abbreviated LETS) is a locally initiated, democratically organised, not-for-profit community enterprise that provides a community informat ...
) in 1983 and for a time ran the
Comox Valley The Comox Valley is a region on the east coast of Vancouver Island, British Columbia, Canada, that includes the city of Courtenay, British Columbia, Courtenay, the town of Comox, British Columbia, Comox, the village of Cumberland, British Columbia, ...
LETSystems in
Courtenay, British Columbia Courtenay ( ) is a city on the east coast of Vancouver Island, in the Provinces and territories of Canada, Canadian province of British Columbia. It is the largest community and only List of cities in British Columbia, city in the area commonly ...
. LETS networks use
interest In finance Finance is the study of financial institutions, financial markets and how they operate within the financial system. It is concerned with the creation and management of money and investments. Savers and investors have money availa ...

interest
-free
local Local may refer to: Geography and transportation * Local (train), a train serving local traffic demand * Local, Missouri, a community in the United States * Local government, a form of public administration, usually the lowest tier of administrati ...
credit px, Domestic credit to private sector in 2005 Credit (from Latin Latin (, or , ) is a classical language belonging to the Italic languages, Italic branch of the Indo-European languages. Latin was originally spoken in the area around Rome, k ...
so direct swaps do not need to be made. For instance, a member may earn credit by doing childcare for one person and spend it later on carpentry with another person in the same network. In LETS, unlike other
local currencies In economics, a local currency is a currency that can be spent in a particular geographical locality at participating organisations. A regional currency is a form of local currency encompassing a larger geographical area, while a community currenc ...
, no
scrip A scrip (or '' chit'' in India) is any substitute for legal tender Legal tender is a form of money Image:National-Debt-Gillray.jpeg, In a 1786 James Gillray caricature, the plentiful money bags handed to King George III are contrasted wi ...
is issued, but rather transactions are recorded in a central location open to all members. As credit is issued by the network members, for the benefit of the members themselves, LETS are considered
mutual credit "Mutual credit" (sometimes called "multilateral barter" or "credit clearing") is a term mostly used in the field of complementary currencies to describe a common, usually small-scale, endogenous money system. The term implies that creditors and d ...
systems.


Local currencies

The first exchange system was the Swiss
WIR Bank The WIR Bank, formerly the Swiss Economic Circle ( German: ''Wirtschaftsring-Genossenschaft''), or WIR, is an independent complementary currency system in Switzerland ,german: Schweizer(in),french: Suisse(sse), it, svizzero/svizzera or , r ...
. It was founded in 1934 as a result of currency shortages after the stock market crash of 1929. "WIR" is both an abbreviation of Wirtschaftsring (economic circle) and the word for "we" in German, reminding participants that the economic circle is also a community. In Australia and New Zealand, the largest barter exchange is
Bartercard Bartercard is an operator of a barter trading exchange. Bartercard enables businesses to exchange goods and services without the use of cash or cash equivalents, or without a direct swap. Bartercard is a trading platform which enables businesses ...
, founded in 1991, with offices in the United Kingdom, United States, Cyprus, UAE and Thailand. Other than its name suggests, it uses an electronic
local currency In economics Economics () is the social science that studies how people interact with value; in particular, the Production (economics), production, distribution (economics), distribution, and Consumption (economics), consumption of goods ...
, the trade dollar.


Bartering in business

In business, barter has the benefit that one gets to know each other, one discourages investments for rent (which is inefficient) and one can impose trade sanctions on dishonest partners. According to the International Reciprocal Trade Association, the industry trade body, more than 450,000 businesses transacted $10 billion globally in 2008 – and officials expect trade volume to grow by 15% in 2009. It is estimated that over 450,000 businesses in the United States were involved in barter exchange activities in 2010. There are approximately 400 commercial and corporate barter companies serving all parts of the world. There are many opportunities for entrepreneurs to start a barter exchange. Several major cities in the U.S. and Canada do not currently have a local
barter exchange In trade Trade involves the transfer of goods or services from one person or entity to another, often in exchange for money. Economists refer to a system A system is a group of Interaction, interacting or interrelated elements that act ...
. There are two industry groups in the United States, th
National Association of Trade Exchanges
(NATE) and the International Reciprocal Trade Association (IRTA). Both offer training and promote high ethical standards among their members. Moreover, each has created its own currency through which its member barter companies can trade. NATE's currency is known as the BANC and IRTA's currency is called Universal Currency (UC). In Canada, barter continues to thrive. The largest b2b barter exchange is Tradebank, founded in 1987. P2P bartering has seen a renaissance in major Canadian cities through Bunz - built as a network of Facebook groups that went on to become a stand-alone bartering based app in January 2016. Within the first year, Bunz accumulated over 75,000 users in over 200 cities worldwide.
Corporate A corporation is an organization—usually a group of people or a company A company, abbreviated as co., is a Legal personality, legal entity representing an association of people, whether Natural person, natural, Legal person, legal ...

Corporate
barter focuses on larger transactions, which is different from a traditional, retail oriented barter exchange. Corporate barter exchanges typically use media and advertising as leverage for their larger transactions. It entails the use of a currency unit called a "trade-credit". The trade-credit must not only be known and guaranteed but also be valued in an amount the media and advertising could have been purchased for had the "client" bought it themselves (contract to eliminate ambiguity and risk). Soviet
bilateral trade Bilateral trade or clearing trade is trade exclusively between two states, particularly, barter trade based on bilateral deals between governments, and without using hard currency for payment. Bilateral trade agreements often aim to keep trade def ...
is occasionally called "barter trade", because although the purchases were denominated in U.S. dollars, the transactions were credited to an international clearing account, avoiding the use of hard cash.


Tax implications

In the United States,
Karl Hess Karl Hess (born Carl Hess III; May 25, 1923 – April 22, 1994) was an American American(s) may refer to: * American, something of, from, or related to the United States of America, commonly known as the United States The United States ...
used bartering to make it harder for the
IRS The Internal Revenue Service (IRS) is the revenue service A revenue service, revenue agency or taxation authority is a government agency responsible for the intake of government revenue, including taxes and sometimes non-tax revenue. ...
to seize his wages and as a form of
tax resistance Tax resistance is the refusal to pay tax A tax is a compulsory financial charge or some other type of levy imposed on a taxpayer (an individual or legal entity In law, a legal person is any person A person (plural people or persons) is a ...
. Hess explained how he turned to barter in an
op-ed An op-ed, short for "opposite the editorial page" or as a backronym A backronym, or bacronym, is an acronym formed from a word that existed prior to the invention of the backronym. Unlike a typical acronym, in which a new word is constructed fro ...
for ''The New York Times'' in 1975. However the IRS now requires barter exchanges to be reported as per the
Tax Equity and Fiscal Responsibility Act of 1982 The Tax Equity and Fiscal Responsibility Act of 1982 (), also known as TEFRA, is a United States federal law The law of the United States comprises many levels of codified and uncodified forms of law, of which the most important is the United State ...
. Barter exchanges are considered taxable revenue by the IRS and must be reported on a 1099-B form. According to the IRS, "The fair market value of goods and services exchanged must be included in the
income In microeconomics Microeconomics is a branch of mainstream economics Mainstream economics is the body of knowledge, theories, and models of economics, as taught by universities worldwide, that are generally accepted by economists as a bas ...
of both parties." Other countries, though, do not have the reporting requirement that the U.S. does concerning proceeds from barter transactions, but taxation is handled the same way as a cash transaction. If one barters for a
profit Profit may refer to: Business and law * Profit (accounting) Profit, in accounting Accounting or Accountancy is the measurement, processing, and communication of financial and non financial information about economic entity, economic en ...
, one pays the appropriate tax; if one generates a loss in the transaction, they have a loss. Bartering for business is also taxed accordingly as business income or business expense. Many barter exchanges require that one register as a business.


Recent developments

In Spain (particularly the
Catalonia Catalonia (; ca, Catalunya ; Aranese, Aranese Occitan: ''Catalonha'' ; es, Cataluña ) is an Autonomous communities of Spain, autonomous community in the northeastern corner of Spain, designated as a ''nationalities and regions of Spain, na ...

Catalonia
region) there is a growing number of exchange markets. These barter markets or swap meets work without money. Participants bring things they do not need and exchange them for the unwanted goods of another participant. Swapping among three parties often helps satisfy tastes when trying to get around the rule that money is not allowed. Other examples are El Cambalache in San Cristobal de las Casas, Chiapas, Mexico and post-Soviet societies.Paul Seabright (2000) The vanishing rouble : barter networks and non-monetary transactions in post-Soviet societies. Cambridge
tc. TC, T.C., Tc, Tc, tc, tC, or .tc may refer to: Arts and entertainment Film and television * Theodore "T.C." Calvin, a character on the TV series '' Magnum, P.I.'' and its reboot * Tom Caron Tom Caron (born 1963 in Lewiston, Maine, Lewiston, Main ...
: Cambridge University Press.


See also

*
Collaborative consumption Collaborative consumption encompasses the sharing economy In capitalism Capitalism is an economic system An economic system, or economic order, is a system of Production (economics), production, allocation of resources, resource alloc ...
* Complementary currencies *
Gift economy A gift economy or gift culture is a mode of exchange where Anthropological theories of value, valuables are not sold, but rather given without an explicit agreement for immediate or future rewards. Social norms and customs govern giving a gift i ...
*
International trade International trade is the exchange of capital Capital most commonly refers to: * Capital letter Letter case (or just case) is the distinction between the letters that are in larger uppercase or capitals (or more formally ''majuscul ...
* List of international trade topics * Local exchange trading system * Natural economy *
Private currencyA private currency is a currency A currency, "in circulation", from la, currens, -entis, literally meaning "running" or "traversing" in the most specific sense is money Image:National-Debt-Gillray.jpeg, In a 1786 James Gillray caricature, t ...
*
Property caretaker 250px, Court Barn near West Pennard, Somerset. This barn is in the care of the National Trust for Places of Historic Interest or Natural Beauty in the United Kingdom. A property caretaker is a person, group, or organization that cares for real es ...
*
Quid pro quo Quid pro quo ('what for what' in Latin Latin (, or , ) is a classical language belonging to the Italic branch of the Indo-European languages. Latin was originally spoken in the area around Rome, known as Latium. Through the power of the ...
*
Simple living Simple living encompasses a number of different voluntary practices to simplicity, simplify one's lifestyle (sociology), lifestyle. These may include, for example, reducing one's Personal property, possessions, generally referred to as minimalism ...
*
Trading cards A trading card (or collectible card) is a small card, usually made out of paperboard Paperboard is a thick paper-based material. While there is no rigid differentiation between paper and paperboard, paperboard is generally thicker (usually over ...
* Time banking


References


External links

* * {{Authority control Business terms Cashless society Economic systems Pricing Simple living Tax avoidance Trade