A two-marketplace and two-currency system: A view on business-to-business barter exchange

This paper is a consideration of the definition of barter credit as a secondary currency. The business-to-business barter exchange and the national economy function as a system comprised of a currency component and a marketplace component. Barter activity including the creation of a medium of exchange is recognized and defined in national legislation of some key jurisdictions, and is defined de jure as a part of the national economy. The barter credit is thus de facto defined as a currency secondary to the national currency which is the primary currency. I consider three points: 1. The rule of “fair market value” guides behaviour in the barter exchange, 2. The option for business to operate in both the barter exchange and the national economy is a mechanism linking the two, 3. The barter exchange functions in such a way that there can be anti-deflationary dynamics in the region, as articulated by Stodder (2009).

Melina Young

To cite this article: Young, M. (2012) ‘A two-marketplace and two-currency system: A view on business-to-business barter exchange ’ International Journal of Community Currency Research 16 (D) 146-155  <www.ijccr.net> ISSN  1325-9547 http://dx.doi.org/10.15133/j.ijccr.2012.021

IJCCR 2012 Young

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