Economics Dictionary of ArgumentsHome
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| Indirect exchange: Indirect exchange in economics refers to the process of trading goods or services through an intermediary, typically money, rather than through direct barter. This system allows individuals to trade more efficiently by using a widely accepted medium of exchange, enhancing market liquidity and simplifying transactions compared to bartering, where goods are exchanged directly. See also Exchange, Barter, Economy, Markets, Money._____________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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Murray N. Rothbard on Indirect Exchange - Dictionary of Arguments
Rothbard III 187 Indirect exchange/Rothbard: (…) The only exchange so far discussed, (…) has been direct exchange, or barter - the exchange of one useful good for another, each for purposes of direct use by the party to the exchange. >Barter/Rothbard, >Exchange/Rothbard. Direct exchange: Although a treatment of direct exchange is important for economic analysis, the scope for direct exchange in society is extremely limited. In a very primitive society, for example, Crusoe could employ Jackson to labor on his farm in exchange for a part of the farm produce. There could, however, be no advanced system of production in a direct-exchange society and no accumulation of capital in higher stages of production - indeed no production at all beyond the most primitive level. [The] problem of the lack of “coincidence of wants” holds even for the simple, direct exchange of consumers’ goods, in addition to the insoluble problem of production. For anyone to sell the simplest commodity, he must find not only one who wants to purchase it, but one who has a commodity for sale that he wants to acquire. The market for anyone’s commodities is therefore extremely limited, the extent of the market for any product is very small, and the scope for division of labor is negligible. >Barter economy. Rothbard III 188 Indirect exchange: The tremendous difficulties of direct exchange can be overcome only by indirect exchange, where an individual buys a commodity in exchange, not as a consumers’ good for the direct satisfaction of his wants or for the production of a consumers’ good, but simply to exchange again for another commodity that he does desire for consumption or for production. Rothbard III 191 Money/exchange medium: A commodity that comes into general use as a medium of exchange is defined as being a money. It is evident that, whereas the concept of a “medium of exchange” is a precise one, and indirect exchange one. Rothbard III 192 The point at which a medium of exchange comes into “common” or “general” use is not strictly definable, and whether or not a medium is a money can be decided only by historical inquiry and the judgment of the historian. >Money/Rothbard._____________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. "Vs" indicates differences in content, not necessarily the chronological progression of a controversy. If a German edition is specified, the page numbers refer to this edition. |
Rothbard II Murray N. Rothbard Classical Economics. An Austrian Perspective on the History of Economic Thought. Cheltenham, UK: Edward Elgar Publishing. Cheltenham 1995 Rothbard III Murray N. Rothbard Man, Economy and State with Power and Market. Study Edition Auburn, Alabama 1962, 1970, 2009 Rothbard IV Murray N. Rothbard The Essential von Mises Auburn, Alabama 1988 Rothbard V Murray N. Rothbard Power and Market: Government and the Economy Kansas City 1977 |
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