Barter, Credit, and Welfare: A theoretical inquiry into the barter phenomenon in Russia

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 defense mechanism against monetary instability. When firms react to tighter credit markets by switching to barter, the risk they face diminishes, allowing for a higher level of production.

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Year of publication:	2005-03-01
Authors:	Noguera, José ; Linz, Susan J.
Institutions:	William Davidson Institute, University of Michigan
Subject:	Barter \| welfare \| Russia \| money \| credit \| payment system \| interest rate

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Series:	William Davidson Institute Working Papers Series.
Type of publication:	Book / Working Paper
Language:	English
Notes:	Number wp757
Classification:	E0 - Macroeconomics and Monetary Economics. General ; E6 - Macroeconomic Policy Formation, Macroeconomic Aspects of Public Finance, Macroeconomic Policy, and General Outlook ; P20 - Socialist Systems and Transitional Economies. General ; P21 - Planning, Coordination, and Reform ; P23 - Factor and Product Markets; Industry Studies; Population ; P26 - Political Economy; Property Rights
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005784686