He identifies two rival views of money in history, one held by the Catallactics
, the other by the Chartalists.
KEYWORDS: Austrian school, praxeology, catallactics
Process for which he introduces a new term in the economic science, namely catallaxy which he defines as a form of spontaneous order (at first he proposed replacing the term economics with catallactics
which comes from the Greek word katallasso meaning to trade, to make an enemy be your friend).
First, he defined political economy as the study of exchange (introducing the term catallactics
that still has some currency among Austrian economists) rather than the study of economic growth and distribution.
Investment Banking and Catallactics
Group Institute for Finance and Financial Markets University of Economics and Business Administration
Specifically, pure economics, especially catallactics
(pure market theory) treats income distribution, just as product price formation, as a natural and impersonal operation driven by its own inner logic and impervious to the influence of the larger social framework, including the polity, social institutions, ideology, religion, morals, culture, and so on.
People like me got "the treatment," but I was surely the better for it, and my appreciation of his focus on catallactics
was greatly sharpened.
231] "there all the time," and "what the catallactics
showed was that something could be done with it.
The Genesis Story according to Buchanan's catallactics
goes further: "In the Beginning there were Perfect Markets: a world of atomistic buyers and sellers where economic power becomes meaningless.
Nonetheless, most of his praxeological analyses focused on catallactics
So it was that they came upon the absurd idea of recommending the equations of mathematical catallactics
, which depict an image devoid of human action, as a substitute for the monetary calculation of the market economy.
Within a few years, Buchanan was calling for economics to focus on catallactics
, or exchange (1964a, 214).