This article is about pre-market economies. For advanced concepts of post-capitalist resource valuation using natural or physical magnitudes, see Calculation in kind.
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 (subsistence). As such, natural economies tend to be self-contained, where all the goods consumed are produced domestically.[1]
The term has often been used in opposition to other forms of economy, most notably capitalism.[1]Rosa Luxemburg believed that the destruction of the natural economy was a necessary condition for the development of capitalism.[2]Karl Marx described the Inca Empire as a natural economy because it was both isolated and based around exchange rather than profit.[3]
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.[4]
natural, economy, this, article, about, market, economies, advanced, concepts, post, capitalist, resource, valuation, using, natural, physical, magnitudes, calculation, kind, type, economy, which, money, used, transfer, resources, among, people, system, alloca. This article is about pre market economies For advanced concepts of post capitalist resource valuation using natural or physical magnitudes see Calculation in kind 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 subsistence As such natural economies tend to be self contained where all the goods consumed are produced domestically 1 The term has often been used in opposition to other forms of economy most notably capitalism 1 Rosa Luxemburg believed that the destruction of the natural economy was a necessary condition for the development of capitalism 2 Karl Marx described the Inca Empire as a natural economy because it was both isolated and based around exchange rather than profit 3 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 4 See also editCalculation in kind Gift economy Resource based economy Subsistence economyReferences edit a b Perrings Charles 1985 The Natural Economy Revisited Economic Development and Cultural Change 33 4 829 850 doi 10 1086 451497 Luxemburg Rosa 1951 The Accumulation of Capital London Routledge amp Kegan Paul p 369 Marx Karl 1956 Capital volume 2 Moscow Progress Publishers p 67 Pirenne Henri 1936 Economic and Social History of Medieval Europe London Routledge amp Kegan Paul pp 103 104 nbsp This article related to macroeconomics is a stub You can help Wikipedia by expanding it vte Retrieved from https en wikipedia org w index php title Natural economy amp oldid 1106666788, wikipedia, wiki, book, books, library,
