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.