Liberty-Finder

2.2

Catallaxy is influenced by Ludwig von Mises’s term Catallactics and was first used by the Austrian economist Friedrich Hayek. He was unhappy with the usage of the term Economy, feeling that the Greek root of the word, which could be translated as ‘household management’, implied that economic agents in a market economy possessed shared goals. Economy is used by Aristotle as ‘the art of household management’ and part of the virtue of wisdom. Keeping in mind that the ‘household’ at Aristotle is used in a broader sense either for a private household or for the household of a state and even if the household at the times of Aristotle could have been a large business unit containing family and thousands of slaves, it was lead towards shared goals which differs from what a market economy is about. Catallaxy as a ‘Science of Exchange’ describes according to Hayek: “the order brought about by the mutual adjustment of many individual economies in a market”. (CC Wikipedia)

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