Re:Circulating in China’s Financial System: More Than $200B ...
by krageon on Thursday August 08, 2019 @03:44AM
(#20642609)
Can you explain to me (and perhaps people like me) exactly what the problem with that is? Goods are being exchanged, so it is fine - but I don't have a huge background in financial systems. I would appreciate a different point of view on that.
[ Parent
| on HN ]
Re:Circulating in China’s Financial System: More Than $200B ...
by joelx on Thursday August 08, 2019 @07:01AM
(#20643368)
"In a barter exchange one good is traded directly for another. This form of exchange requires a double coincidence of wants, meaning that each trader has what the other trader wants and wants what the other has. Without a double coincidence of wants the exchange process can become exceedingly complex, requiring a great deal of resources to complete transactions, resources that cannot be used for production. In fact, inefficient barter trading is the primary reason that money was invented." - good explanation from AmosWeb