Catallactics is a theory of the way the free market system reaches exchange ratios and prices.[1][2][3][4] It aims to analyse all actions based on monetary calculation and trace the formation of prices back to the point where an agent makes his or her choices.[5] It explains prices as they are, rather than as they "should" be. The laws of catallactics are not value judgments, but aim to be exact, empirical, and of universal validity. It was used extensively by the Austrian School economist Ludwig von Mises.[6]
The term catallactics or catallaxy, respectively, comes from the Greek verb καταλλάσσω which means to exchange, to reconcile.[7][8]
Definitionedit
Catallactics is a praxeological theory. The term catallaxy was used by Friedrich Hayek to describe "the order brought about by the mutual adjustment of many individual economies in a market."[9] Hayek was dissatisfied with the usage of the word "economy" because its Greek root, which translates as "household management", implies that economic agents in a market economy possess shared goals. He derived the word "Catallaxy" (Hayek's suggested Greek construction would be rendered καταλλαξία) from the Greek verb katallasso (καταλλάσσω) which meant not only "to exchange" but also "to admit in the community" and "to change from enemy into friend."[10]
According to Mises[11] and Hayek[12] it was Richard Whately who coined the term "catallactics". Whately's Introductory Lectures on Political Economy (1831) reads:[13][14]
It is with a view to put you on your guard against prejudices thus created, (and you will meet probably with many instances of persons influenced by them,) that I have stated my objections to the name of Political-Economy. It is now, I conceive, too late to think of changing it. A. Smith, indeed, has designated his work a treatise on the "Wealth of Nations;" but this supplies a name only for the subject-matter, not for the science itself. The name I should have preferred as the most descriptive, and on the whole least objectionable, is that of CATALLACTICS, or the "Science of Exchanges."
^"s.v. catallactics". The Oxford English Dictionary: Being a Corrected Re-Issue of with An Introduction, Supplement and Bibliography of a New English Dictionary on Historical Principles. Vol. 2 C. Oxford: Clarendon Press. 1933. p. 170. Retrieved 3 October 2023 – via Internet Archive.
^"s.v. καταλλάσσω". ΛΟΓΕΙΟΝ. Retrieved 30 September 2023.
^Hayek, F.A. (1976). Law, Legislation, and Liberty (The Mirage of Social Justice). Vol. 2. London: Routledge. pp. 108–109.
^Hayek, F.A. (1976). Law, Legislation, and Liberty (The Mirage of Social Justice). Vol. 2. London: Routledge. pp. 108–109. See also p. 185 n4.
^Mises, Ludwig (1949). Human Action: A Treatise on Economics. London: William Hodge and Company, Limited. p. 3 – via Internet Archive.
^. Archived from the original on 2010-07-17. Retrieved 2010-07-14.
^Whately, Richard (1832). Introductory Lectures on Political Economy: Delivered in Eastern Term, MDCCCXXXI (2nd ed.). London: B. Fellowes. pp. 6-7. Retrieved 27 September 2023 – via Internet Archive.
^. Archived from the original on 2010-07-17. Retrieved 2010-07-14. A footnote to this paragraph continues: "It is perhaps hardly necessary to observe, that I do not pretend to have classical authority for this use of the word Catallactics; nor do I deem it necessary to make any apology for using it without such authority. It would be thought, I conceive, an absurd pedantry to find fault with such words as "thermometer," "telescope," "pneumatics," "hydraulics," "geology," &c. on the ground that classical Greek writers have not employed them, or have taken them in a different sense. In the present instance, however, I am not sure that, if Aristotle had had occasion to express my meaning, he would not have used the very same word. In fact I may say he has used another part of the same verb in the sense of "exchanging;" (for the Verbals in are, to all practical purposes, to be regarded as parts of the verbs they are formed from) in the third book of the Nicom. Ethics he speaks of men who hold their lives so cheap, that they risked them in exchange for the most trifling gain (καταλλάττονται). The employment of this and kindred words in the sense of "reconcilement," is evidently secondary, reconciliation being commonly effected by a compensation; something accepted as an equivalent for loss or injury."
Buchanan, James M. (1992). "I did not call him "Fritz": Personal Recollection of Professor F. A. v. Hayek". Constitutional Political Economy. 3 (2): 134. doi:10.1007/BF02393117.
Chafuen, Alejandro (24 December 2022). "The Free Economy As A Gift From God". Forbes. Retrieved 3 October 2023.
Hayek, F. A. (1968). The Confusion of Language in Political Thought. London: Institute of Economic Affairs. pp. 28–31. Retrieved 29 September 2023.
Hayek, F.A. (1978). "The Confusion of Language in Political Thought". New Studies in Philosophy, Politics, Economics and History of Ideas. London and Chicago: Routledge and University of Chicago Press. pp. 90-92 – via Internet Archive.
Hayek, F. A. (1988). Bartley III, W. W. (ed.). The Fatal Conceit: The Errors of Socialism (The Collected Works of F. A. Hayek). Vol. 1. Chicago: The University of Chicago Press. pp. 111-112 – via Internet Archive.
Kirzner, Israel M. (1960). The Economic Point of View: An Essay in the History of Economic Thought. Kansas City: Sheed and Ward, Inc. pp. 72-73.
Machlup, Fritz (May 1951). "Schumpeter's Economic Methodology". Review of Economics and Statistics. 33 (2): 145–151. doi:10.2307/1925877. JSTOR 1925877.
Macleod, Henry Dunning (1896). The History of Economics. London: Bliss, Sands and Co. pp. 108-110 – via Internet Archive.
Perry, Arthur Latham (1891). Principles of Political Economy. New York: Scribner.
Plough, Patrick (1842). Letters on the Rudiments of a Science, called, formerly, improperly, Political Economy, recently more pertinently, Catallactics. London: Joseph Masters – via Google Books.
Ruskin, John (1903). "Ad Valorem". "Unto This Last": Four Essays on the Principles of Political Economy. London: George Allen. p. 132. Retrieved 5 October 2023 – via Internet Archive.
External linksedit
Garner, Bryan A., ed. (2014). "catallactics". Black's Law Dictionary (10th ed.). St. Paul, MN: Thomson Reuters. p. 263 – via Internet Archive.
April 10, 2024
catallactics, theory, free, market, system, reaches, exchange, ratios, prices, aims, analyse, actions, based, monetary, calculation, trace, formation, prices, back, point, where, agent, makes, choices, explains, prices, they, rather, than, they, should, laws, . Catallactics is a theory of the way the free market system reaches exchange ratios and prices 1 2 3 4 It aims to analyse all actions based on monetary calculation and trace the formation of prices back to the point where an agent makes his or her choices 5 It explains prices as they are rather than as they should be The laws of catallactics are not value judgments but aim to be exact empirical and of universal validity It was used extensively by the Austrian School economist Ludwig von Mises 6 Contents 1 Etymology 2 Definition 3 See also 4 Notes 5 Bibliography 6 External linksEtymology editThe term catallactics or catallaxy respectively comes from the Greek verb katallassw which means to exchange to reconcile 7 8 Definition editCatallactics is a praxeological theory The term catallaxy was used by Friedrich Hayek to describe the order brought about by the mutual adjustment of many individual economies in a market 9 Hayek was dissatisfied with the usage of the word economy because its Greek root which translates as household management implies that economic agents in a market economy possess shared goals He derived the word Catallaxy Hayek s suggested Greek construction would be rendered katalla3ia from the Greek verb katallasso katallassw which meant not only to exchange but also to admit in the community and to change from enemy into friend 10 According to Mises 11 and Hayek 12 it was Richard Whately who coined the term catallactics Whately s Introductory Lectures on Political Economy 1831 reads 13 14 It is with a view to put you on your guard against prejudices thus created and you will meet probably with many instances of persons influenced by them that I have stated my objections to the name of Political Economy It is now I conceive too late to think of changing it A Smith indeed has designated his work a treatise on the Wealth of Nations but this supplies a name only for the subject matter not for the science itself The name I should have preferred as the most descriptive and on the whole least objectionable is that of CATALLACTICS or the Science of Exchanges See also editPrice signal Catallaxy Henry Dunning MacleodNotes edit catallactics Oxford English Dictionary third edition Oxford University Press December 2002 Retrieved 3 October 2023 catallactics Merriam Webster Dictionary 11th ed 2003 Retrieved 3 October 2023 s v catallactics The Oxford English Dictionary Being a Corrected Re Issue of with An Introduction Supplement and Bibliography of a New English Dictionary on Historical Principles Vol 2 C Oxford Clarendon Press 1933 p 170 Retrieved 3 October 2023 via Internet Archive Rothbard Murray N 2008 catallactics In Durlauf Steven N Blume Lawrence E eds The New Palgrave Dictionary of Economics Vol 1 2nd ed New York NY Palgrave Macmillan pp 704 705 via Internet Archive Rutherford Donald 2002 catallactics Routledge Dictionary of Economics 2nd ed London and New York Routledge p 75 via Internet Archive Kirzner Israel M 2001 Ludwig von Mises The Man and His Economics Wilmington Delaware ISI Books pp 93 Liddell Henry George Scott Robert 1992 A Greek English Lexicon Oxford Clarendon Press p 899 via Internet Archive s v katallassw LOGEION Retrieved 30 September 2023 Hayek F A 1976 Law Legislation and Liberty The Mirage of Social Justice Vol 2 London Routledge pp 108 109 Hayek F A 1976 Law Legislation and Liberty The Mirage of Social Justice Vol 2 London Routledge pp 108 109 See also p 185 n4 Mises Ludwig 1949 Human Action A Treatise on Economics London William Hodge and Company Limited p 3 via Internet Archive Catallactics amp education Archived from the original on 2010 07 17 Retrieved 2010 07 14 Whately Richard 1832 Introductory Lectures on Political Economy Delivered in Eastern Term MDCCCXXXI 2nd ed London B Fellowes pp 6 7 Retrieved 27 September 2023 via Internet Archive Online Library of Liberty Reading Lists Ian Dunois Free Market foundations Archived from the original on 2010 07 17 Retrieved 2010 07 14 A footnote to this paragraph continues It is perhaps hardly necessary to observe that I do not pretend to have classical authority for this use of the word Catallactics nor do I deem it necessary to make any apology for using it without such authority It would be thought I conceive an absurd pedantry to find fault with such words as thermometer telescope pneumatics hydraulics geology amp c on the ground that classical Greek writers have not employed them or have taken them in a different sense In the present instance however I am not sure that if Aristotle had had occasion to express my meaning he would not have used the very same word In fact I may say he has used another part of the same verb in the sense of exchanging for the Verbals in are to all practical purposes to be regarded as parts of the verbs they are formed from in the third book of the Nicom Ethics he speaks of men who hold their lives so cheap that they risked them in exchange for the most trifling gain katallattontai The employment of this and kindred words in the sense of reconcilement is evidently secondary reconciliation being commonly effected by a compensation something accepted as an equivalent for loss or injury Bibliography editBuchanan James M 1979 What Should Economists Do Indianapolis IN Liberty Press pp 19 via Internet Archive Buchanan James M 1992 I did not call him Fritz Personal Recollection of Professor F A v Hayek Constitutional Political Economy 3 2 134 doi 10 1007 BF02393117 Chafuen Alejandro 24 December 2022 The Free Economy As A Gift From God Forbes Retrieved 3 October 2023 Hayek F A 1968 The Confusion of Language in Political Thought London Institute of Economic Affairs pp 28 31 Retrieved 29 September 2023 Hayek F A 1978 The Confusion of Language in Political Thought New Studies in Philosophy Politics Economics and History of Ideas London and Chicago Routledge and University of Chicago Press pp 90 92 via Internet Archive Hayek F A 1988 Bartley III W W ed The Fatal Conceit The Errors of Socialism The Collected Works of F A Hayek Vol 1 Chicago The University of Chicago Press pp 111 112 via Internet Archive Kirzner Israel M 1960 The Economic Point of View An Essay in the History of Economic Thought Kansas City Sheed and Ward Inc pp 72 73 Machlup Fritz May 1951 Schumpeter s Economic Methodology Review of Economics and Statistics 33 2 145 151 doi 10 2307 1925877 JSTOR 1925877 Macleod Henry Dunning 1896 The History of Economics London Bliss Sands and Co pp 108 110 via Internet Archive Perry Arthur Latham 1891 Principles of Political Economy New York Scribner Plough Patrick 1842 Letters on the Rudiments of a Science called formerly improperly Political Economy recently more pertinently Catallactics London Joseph Masters via Google Books Ruskin John 1903 Ad Valorem Unto This Last Four Essays on the Principles of Political Economy London George Allen p 132 Retrieved 5 October 2023 via Internet Archive External links editGarner Bryan A ed 2014 catallactics Black s Law Dictionary 10th ed St Paul MN Thomson Reuters p 263 via Internet Archive Retrieved from https en wikipedia org w index php title Catallactics amp oldid 1201867040, wikipedia, wiki, book, books, library,
