Saturday, November 5, 2011

Markets Can Occur Anywhere!

This article is proof that even when money is absent, people will still trade and exhibit laws of the market to exchanges goods and services. In prisoner of war camps, cigarettes and foodstuffs became a means of currency for men to swap. There were even cases of low demand, or waiting for a better price. The author explained, "People left surplus clothing, toilet-requisites and food in shop until sold at fixed price in cigarettes". The market naturally came into existence without labor or production; even specialists and middlemen were brought about to provide better services within the camps.  I think that its interesting that the "just price" was not affected by "short term variations in supply"

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