MIT Study Shows Barter’s Use In Monetary Crisis
Dr. David Woodruff of MIT reports that barter’s use was very
important after the collapse of the Soviet Union back in the late
1990’s. In Russia the crisis lasted a decade. Inflation had
destroyed the currency...there was neither a banking sector to speak
of nor a functioning monetary system.
Barter was the answer. It was used by individuals, businesses, and
the central government. Woodruff says that in 1998 a huge 50% to 75%
of exchange in Russian industry took the form of barter. And at
least one-quarter of the revenue collected in 1997 for the federal
budget took a non-monetary form.
