Barter Economy

An economy where such economic agents as households, corporations, and even governments pay for goods and services with another good or service is known as a barter economy.

Drawbacks of a barter economy:

There has to be a double coincidence of wants.

Impossible to undertake transactions where the goods are indivisible.

Perishable goods are not able to store value for their owner.

No common measure of value that would make multiple transactions simple.