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DISEQUILIBRIUM EXCHANGE IN BARTER AND MONETARY ECONOMIES
Author(s) -
BENASSY JEANPASCAL
Publication year - 1975
Publication title -
economic inquiry
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.823
H-Index - 72
eISSN - 1465-7295
pISSN - 0095-2583
DOI - 10.1111/j.1465-7295.1975.tb00984.x
Subject(s) - barter , disequilibrium , economics , monetary economics , macroeconomics , keynesian economics , medicine , ophthalmology
This article compares the relative performances of barter and monetary arrangements at fixed disequilibrium prices. The decentralized functioning of the two systems is described, and their “fix‐price” equilibria compared. It is shown that, while the fix‐price equilibria will be more difficult to obtain in the barter economy, they are more efficient than in the monetary economy where disequilibrium “effective demand failures” appear.