To barter involves trading goods without the use of money. Modern economies operate efficiently because they use money instead of being forced into bartering.

The problem with an economy based on barter is matching up individuals with desired goods. For example: Joe needs a new coat, George sells new coats and wants fresh fruit - if Joe is a carpenter and doesn't have access to fresh fruit then the process breaks down. This is why money is essential for large economies.

Exchanging goods for services is different from bartering. A "good" has a tangible value and cost associated with it, a "service" also has value but it is harder to establish the associated cost. For example: gold has a value that is easily established (http://money.cnn.com/data/com modities/) but what is a haircut worth? It is possible to get a haircut for $10, it is also possible to pay hundreds of dollars for a haircut. No matter how much you pay for a haircut - you will probably want/need another one in the future.

From a practical standpoint when items are traded then they are considered of equal value. This presents another problem for trading goods for services - how much of a service equals how much of a good? Even in the bartering example the exchange rate is a factor (how much fresh fruit is equal to a new coat?). Money and the banking system are essential for a modern economy to work - here ends the economics lesson ;-)

On a very limited scale trading goods for services can make a comeback for three reasons: the boutique factor, economic necessity, or goodwill.

Boutique factor
A small specialty shop (a boutique) can give the appearance of exclusivity and therefore greatly increase its perceived value. The same concept applies to trading goods for services. A specialty shop could choose to accept goods for services to give their clientele a sense of being special and pampered

Secondly, if the good or the service is rare or of extremely high perceived value then money probably won't work. Many movies have been made with this as the premise - e.g. I think of Marilyn Monroe singing "Diamonds are a Girls Best Friend" or Madonna in "Material Girl" (with the implied "service" being ...lol).

Economic necessity
In times of hardship or simply because of destitution individuals who require a service don't have the money to pay for services rendered. Doctors and lawyers accepting farm animals and fruit for their services is part of Americana (although it is hard

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