Abstract
One of the striking features of the transition in Russia was the enormous growth in the use of barter and other non-monetary means of payment. The transition from command initially led to a monetization of the economy, but a subsequent re-demonetization was a surprise. Barter was a passing phase in most transition economies but became endemic in Russia. Barter proliferated as inflation was tamed and reached its zenith prior to the August 1998 financial crisis. Various theories of why barter exploded in Russia are discussed and empirical findings are assessed.
This chapter was originally published in The New Palgrave Dictionary of Economics, 2nd edition, 2008. Edited by Steven N. Durlauf and Lawrence E. Blume
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Ickes, B.W. (2008). Barter in Transition. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95121-5_2516-1
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DOI: https://doi.org/10.1057/978-1-349-95121-5_2516-1
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