ⓘ Natural economy

Natural economy

ⓘ Natural economy

Natural economy - is a type of economy in which money is not used in the transfer of resources among people. It is a system of allocating resources through direct bartering, entitlement by law, or sharing out according to traditional custom. In the more complex forms of natural economy, some goods may act as a referent for fair bartering, but generally currency plays only a small role in allocating resources. As a corollary, the majority of goods produced in a system of natural economy are not produced for the purpose of exchanging them, but for direct consumption by the producers. As such, natural economies tend to be self-contained, where all the goods consumed are produced domestically.

The term has often been used in opposition to other forms of economy, most notably capitalism. Rosa Luxemburg believed that the destruction of the natural economy was a necessary condition for the development of capitalism. Karl Marx described the Inca Empire as a natural economy because it was both isolated and based around exchange rather than profit.

Other writers have used a more relative sense of natural economy. Belgian economic historian Henri Pirenne noted that medieval Europe has often been described as a natural economy despite the existence of money, since money played a much less significant role than in earlier or later periods.

  • an industry where a natural monopoly does not exist, the vast majority of industries, the marginal cost decreases with economies of scale, then increases
  • The economy of Mongolia has traditionally been based on agriculture and livestock. Mongolia also has extensive mineral deposits: copper, coal, molybdenum
  • The economy of Norway is a developed mixed economy with state - ownership in strategic areas. Although sensitive to global business cycles, the economy of
  • The economy of Madagascar is a market economy and is supported by Madagascar s well - established agricultural industry and emerging tourism, textile and
  • The economy of Argentina is an upper middle - income economy for fiscal year 2019 according to the World Bank. It is the second - largest in South America
  • The economy of Israel is a highly advanced free - market, primarily knowledge - based economy Israel ranks within the top 20 nations in the world on the
  • declined caused by adverse shocks such as a slowdown in the global economy and natural disasters. To deal with the shocks, fiscal policy became more expansionary
  • planned economy is a type of economic system where investment, production and the allocation of capital goods take place according to economy - wide economic
  • or natural - resource - based economy is that of a country whose gross national product or gross domestic product to a large extent comes from natural resources

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