It actually turns out that barter is one of the founding myths of modern economics. Notice that economics books always have these invented stories of quaint tow

It actually turns out that barter is one of the founding myths of modern economics. Notice that economics books always have these invented stories of quaint towns (or savage tribes) of people in the same community bartering; they don't actually offer historical evidence. Turns out there is none. When people trade in a community, credit systems predate currencies, which predates barter. This is the opposite of the usual myth (where everyone barters like fools, then they use currency, then they tech up to credit). And they also make the strange assumption they'd be engaging in the "spot trade," which also is ahistorical. It's not like you'd come to me with shoes and I'd hand over a sack of potatoes. If we're neighbors, our relationship wouldn't be about market transactions (unless I suppose we're hostile and untrusting, so we'd better trade simultaneously so we don't rip each other off). I think Graeber's _Debt: The First 5,000 Years_ is the most illuminating source on the subject. (http://www.amazon.com/Debt-The-First-000-Years/dp/1933633867 http://www.amazon.com/Debt-The-First-000-Years/dp/1933633867)