Question

Every month magazine includes a "Swop- Yankee per's [sic] Column" of offers to barter goods and services. Here is an example: "Will swop custom-designed wedding gown and up to 6 bridesmaids' gowns for 2 round-trip plane tickets and 3 nights' lodging in the countryside of England." Why would it be difficult to run our economy using a "Swopper's Column" instead of money? In light of your answer, why might the "Swopper's Yankee Column" exist?

Answer 1

Swop Yankee model is a barter system that was practiced long time ago as the only mode of transaction. The economy will not survive today if all mode of transaction is done through barter because of inefficiencies. For barter to be successful, there has to be a double coincidence of want i.e. your trading of x with someone’s y can only be successful if we both have the opposite want of what we own now. Barter is an immediate reciprocal exchange system. There is no delay. So, in a way, it is impractical when considered as a mode of transaction for the whole economy.

However, Swop Yankee model still exist because there are some want that can be satisfied with no delay in time. It can survive for short period of time in parallel to the currency system, but not in isolation.