Introduction

In the years 1995–9 barter and demonetisation in the former planned economies moved from being considered minor, somewhat exotic, phenomena to being taken seriously as symptoms of major economic dislocation, and potentially as a barrier to successful transition towards a market economy. This volume has brought together both theory and evidence from a range of sources to enable us not only to describe these phenomena better, but also to evaluate them. Here we focus on what we have learned, and specifically try to answer the question of what lessons can be drawn for policy. In particular, to the extent that barter and demonetisation are symptomatic of general economic dislocation, do they imply the need for action by nation states, local governments or private parties? And to the extent that they do, are they purely symptomatic of economic dislocation or do they deepen and prolong the damage? Do they require action directly to discourage such transactions or are they principally a signal of the need for action of a different kind?

The evidence gathered in this volume reveals a remarkable variety of types of transaction that could be considered to fall under the general heading of ‘barter’. It would be tempting to conclude that it is impossible to generalise about the phenomenon.