0d246b31   
   XPost: soc.culture.baltics, soc.culture.czecho-slovak, soc.culture.russian   
   XPost: soc.culture.nordic   
   From: ddfr@daviddfriedman.nopsam.com   
      
   In article ,   
      
      
   (I wrote)   
   > >>> it's the terms of the barter--biased, by   
   > >>> your accounts, in favor of Finland, apparently the weaker party.   
      
   Anton  wrote:   
      
   > >> Is barter based trade attractive to a capitalist market economy? No. How   
   > >> do you make it attractive?   
      
   (I replied)   
   > > By offering stuff on terms that make it profitable.   
      
   > Touché. That's what the Soviets did.   
      
   So your "no" was mistaken.   
      
   But, by the account several of you have given, they offered the stuff on   
   terms much more favorable than were necessary to make it profitable.   
   That's the puzzle I was raising.   
      
   > > Why would you expect barter to be a problem for a market economy? Money   
   > > exchange is more convenient, but if someone wants to offer you ten   
   > > million dollars worth of oil in exchange for nine million dollars worth   
   > > of machine tools, you can make the deal, sell the oil for money to   
   > > someone else, and end up a million dollars ahead.   
      
   > That is the nature of Finno-Soviet trade in a nutshell.   
      
   You haven't explained your initial view that barter based trade would   
   not be attractive to a capitalist market economy. Are you now saying you   
   were mistaken, or did I misunderstand your earlier post?   
      
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