Barter is not inflationary in long term

Mohammad Hosein Fatehi, an economic expert believes that money is not a real factor in economy but it is only a facilitator. According to economic reporter of the Journalists Club merchants have used barter system to exchange trades since ancient times, so that they would both resolve their needs and prevented their excess stock from getting accumulated. Over time with the creation of money and currency exchange trade coming to existence, barter system disappeared. However in today's world, considering the global economic circumstances, Barter system is coming to life again and has captured the attention of governments in various parts of the worlds.
Shortage of money or lack of liquidity is one of the main obstacles in different sections of economy which has caused the economic projects to fail or get suspended and that is the reason why economic experts are considering new age barter.
In this regard, Mohammad Hosein Fatehi, being interviewed by the economic reporter of the Journalists Club said; "Obviously, it is not as beneficial for the economy as trades in cash but exports in any form are beneficial for our economy. This is a fact in economy which definitely has its advantages such as improving the business environment inside the country. Although it is not in cash, it paves the way for the betterment of country's trade.
Regarding the inflationary impact of barter system, he said: "Barter is not inflationary in the long run since money is not a real agent in economy but only a medium which facilitates the trading. In the international trade system money is being exchanged in return for merchandise. Therefore, even if actual money is not being exchanged in barter system, its equivalent value is and in fact the value of goods is measured as money units and thus the barter system does not cause inflation at all.
Fatehi concluded at the end: in any case money has a part in barter system and the traditional method which involves exchanging cash, has long disappeared & this is an international agreement.