What are the advantages of the barter system?

The advantages of barter system are, the system is simple, there are no complexities involved unlike monetary system, natural resources will not be overexploited, power will not be concentrated in some circles, there won’t be problems of balance of payments crisis, foreign exchange crisis, or other complex problems of international trade. You can read about the Monetary System – Types of Monetary System (Commodity, Commodity-Based, Fiat Money) in the given link.

Further readings:

  1. Indian Economy Notes for UPSC Civil Service Exam
  2. Monetary Policy – Objectives, Role, Instruments 

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