Depression in a one-good barter economy
David Bourget (Western Ontario)
David Chalmers (ANU, NYU)
Rafael De Clercq
Ezio Di Nucci
Jack Alan Reynolds
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Consider a one-good economy where money is not used and only barter holds. As is traditional, the unique good can be exchanged for labor, which itself is used to produce the good; and there are capitalists, who own the means of production, who contract for the labor and keep whatever of the good is left from production after paying the workers. The only unusual feature of the economy is that the various economic agents can also make promises of future delivery of the good, and barter these promises against the good itself.
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