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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.

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