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Natural economy refers to 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).
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In simple words it refers to barter system.
All sources of nature, which is not the hand of man in the existence
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Means the economy, which is rare or non-existent in which the use of the money, which was a prominent feature of human societies, in the early stages of economic development. It follows in the natural economy of barter system, which can use him any good or service in the purchase of any other commodity or service.
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