ABSTRACT

In a complete economy, each good stands in a fixed barter relationship with any other good at any given time, or to express it differently: they are being bought and sold at a certain price. But there is not always a barter relation, not in an isolated economy and not in those elements of an isolated economy, which actually can also been found in a real economy. So, in order to not have to do without this available tool or the generalizability of our findings, we want to plug it in where it is missing by assuming that all economic activities are being defined as barter and assume that even where there is no barter relation, the economy functions as if there were one. Barter relation is pure economics, which becomes apparent from what people already have said, and it is true for the isolated system as well as the state.