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Barter is a type of trade that doesn't use any medium of exchange, in which goods or services are exchanged for other goods and/or services. It can be bilateral or multilateral as trade. Barter and money are different means of balancing an economic exchange. Barter is recognized as trade in societies without monetary systems. Although it can be argued that barter exists in most societies parallel to monetary systems. Barter crosses over to the spheres of trade with money when economies are suffering from a very unstable currency (as when hyperinflation hits). Barter is also used as a concept in regard of intercultural exchange between craftsmen or artists of different countries, especially when the exchange is passing the gap between "the rich world" and "the poor world". Why is it done? In the past, goods were to be exchanged in the goods of another without considering of its money value. To organize production and to distribute goods and services among their populations, many pre-capitalist or pre-market economies relied on tradition, top-down command, or community democracy instead of market exchange organised using barter. Relations of reciprocity and/or redistribution substituted for market exchange. Trade and barter were primarily reserved for trade between communities or countries. It is also used when the monetary system failed to measure the economic value of goods.
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