Is Barter a Hobson’s Choice? A theory of barter and credit rationing

Jose Noguera

CERGE-EI Working Papers from The Center for Economic Research and Graduate Education - Economics Institute, Prague

Abstract: This paper proposes a theoretical monetary model to inquire as to whether the growth and decline in barter transactions between firms in Russia during the 1990s was the result of credit rationing or firms' optimal decision. The model also provides an explanation for the negative correlations between the share of total transactions between firms conducted through barter and inflation, and also to the quick decline in barter transactions that followed the 1998 currency crisis.

Keywords: Barter; Interest rate; Credit rationing; Optimal choice. (search for similar items in EconPapers)
JEL-codes: E0 E4 E5 F41 P24 P26 (search for similar items in EconPapers)
Date: 2004-09
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Persistent link: https://EconPapers.repec.org/RePEc:cer:papers:wp239

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