The settlement of mutual claims in money by way of offsetting; the compensation of a debt by a corresponding counterclaim (counter claim, cross claim). – If this occurs only between banks, it is generally referred to as clearing; in the case of companies, it is often referred to as netting. – In the case of securities orders, the settlement of purchases and sales for the account of a customer without the intermediary of the stock exchange. In Germany, banks have voluntarily undertaken to execute all orders via the stock exchange. – The exchange of goods for goods at the level of companies or states – as in the former Eastern bloc, for example – also known as barat(t) transactions and common where money cannot fulfill its function as an intermediate means of exchange. Of course, here too – and this is often overlooked – the parties to the exchange must always agree on a common measure of value; in the former association of Eastern bloc countries, this was usually the world market prices in U.S. dollars. – In shortage and planned economies, the – forbidden and punishable – exchange of scarce, generally sought-after goods for other things
(goods or services). – See arrangement,
beat, barat transaction, bed edge currency, clearing, fulfillment, money abolition, voucher, netting, exchange voucher, commodity money, payment, cigarette currency.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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