The economic system where goods are traded without money is known as a barter system. In this system, goods and services are exchanged directly for other goods and services without the involvement of currency. Bartering relies on the mutual agreement of the parties involved regarding the value of the items being traded. While barter systems can facilitate trade, they often face challenges like the "double coincidence of wants," where two parties must want what the other offers. While less common in modern economies, bartering can still occur, especially in local markets and informal transactions.