Economics Dictionary of ArgumentsHome
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| Barter economy: A barter economy is a system where goods and services are directly exchanged without using money. Transactions rely on mutual needs and the "double coincidence of wants," making it less efficient than monetary economies. Barter was prevalent in early societies and is still used in limited contexts today._____________Annotation: The above characterizations of concepts are neither definitions nor exhausting presentations of problems related to them. Instead, they are intended to give a short introduction to the contributions below. – Lexicon of Arguments. | |||
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Friedrich A. von Hayek on Barter Economy - Dictionary of Arguments
Kurz I 111/112 Barter Economy/Money/Hayek/KeynesVsHayek/Kurz: [Keynes] took issue with Hayek’s claim that the possibility of a difference between own rates of interest and thus a divergence of some rates from the “equilibrium” or “natural” rate is a characteristic of a money economy that is absent in a barter economy (Sraffa 1932, p. 49)(1). >Barter economy/Sraffa. Kurz I 113 Equilibirium/SraffaVsHayek: In equilibrium the spot and forward price coincide, for cotton as for any other commodity; and all the “natural” or commodity rates are equal to one another, and to the money rate. But if, for any reason, the supply and the demand for a commodity are not in equilibrium (i.e. its market price exceeds or falls short of its cost of production), its spot and forward prices diverge, and the “natural” rate of interest on that commodity diverges from the “natural” rates on other commodities. (ibid.) Therefore, out of equilibrium, there is not only one “natural rate,” as Hayek had wrongly maintained, but there are many natural rates. Sraffa added that “under free competition, this divergence of rates is as essential to the effecting of the transition [to a new equilibrium] as is the divergence of prices from the costs of production; it is, in fact, another aspect of the same thing”. (Sraffa 1932, p. 50)(1). 1. Sraffa, P. (1932). “Dr. Hayek on Money and Capital,” Economic Journal, 42, 42-53. Kurz, Heinz D. „Keynes, Sraffa, and the latter’s “secret skepticism“. In: Kurz, Heinz; Salvadori, Neri 2015. Revisiting Classical Economics: Studies in Long-Period Analysis (Routledge Studies in the History of Economics). London, UK: Routledge._____________Explanation of symbols: Roman numerals indicate the source, arabic numerals indicate the page number. The corresponding books are indicated on the right hand side. ((s)…): Comment by the sender of the contribution. Translations: Dictionary of Arguments The note [Concept/Author], [Author1]Vs[Author2] or [Author]Vs[term] resp. "problem:"/"solution:", "old:"/"new:" and "thesis:" is an addition from the Dictionary of Arguments. If a German edition is specified, the page numbers refer to this edition. |
Hayek I Friedrich A. Hayek The Road to Serfdom: Text and Documents--The Definitive Edition (The Collected Works of F. A. Hayek, Volume 2) Chicago 2007 Kurz I Heinz D. Kurz Neri Salvadori Revisiting Classical Economics: Studies in Long-Period Analysis (Routledge Studies in the History of Economics). Routledge. London 2015 |
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