In analyzing the problem of credit expansion, catallactics
completes the structure of the theory of money and of interest....
This leads us to the second part of praxeology, applied theory, also known as "catallactics
," which is that portion of praxeology that deals specifically with social interaction between individuals.
Wikipedia (2011) "Catallactics
" entry, at en.wikipedia.org/wiki/Catallactics
(18.) 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.
Senior's mentor, Bishop Whately had already suggested that the proper name for political economy should have been 'CATALLACTICS
or the "Science of Exchanges"' (1831: 6, original emphasis).
Hulsmann makes it interesting and easy, and you will learn about praxeology (or catallactics
), the science of human action.
Investment Banking and Catallactics
Group Institute for Finance and Financial Markets University of Economics and Business Administration
Hicks did not even bother to mention Hearn's name in his well-known piece on the distinction between 'Plutology' (the theory of wealth) and 'catallactics
' (the theory of exchange), since he believed that 'the only writer who has preciously used that term [Plutology] ...
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.
Professor Buchanan speaks to individuals who deny what a market economy so clearly recognizes: that people have differing capacities to create value and that prosperity depends on "catallactics
," which Professor Buchanan defines as the conditions giving rise to exchange whether in the political or market context.