Wonderous World of Words = Catallaxy

Catallaxy is a word referring to “the economy”, used by Friedrich Hayek and influenced by Ludwig von Mises’ word “Catallactics”.  The word, catallaxy, refers to more than “household management” – which is what the Greek-root of the word economy actually means.  Dating back to Aristotle, the concept of household management could refer to a family-home, or an entire country, however with both there is an implication of “shared goals”.  Hayek, not completely happy with the concept of shared goals in a market economy, used Catallaxy to describe what was then called economy.  In a market economy, Catallaxy is viewed as a “Science of Exchange” (See reference).

Reference:

Boettke, P. in The Political Economy of the Austrian School, 2nd edition 1994, preface, proposition 2.  Retrieved originally on June 27, 2010 from http://en.wikipedia.org/wiki/Catallaxy

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