Barter Definition

Barter is a type of exchange or trade where goods or services are directly exchanged for other goods or services, without the use of any money. For example, you could offer to mow your neighbor’s lawn for the season in exchange for a pile of valuable lumber sitting in his garage. In modern societies, barter usually represents a small fraction of the economy, though this rapidly changes in times of economic crisis, when currency is quickly devalued by hyperinflation.