On Wednesday, 27 January 2016 at 17:11:18 UTC, jmh530 wrote:
On Wednesday, 27 January 2016 at 16:40:11 UTC, Laeeth Isharc
wrote:
and it's more governed by the principle of catallaxy discussed
by Hayek
Principle of spontaneous order might be appropriate.
One and the same.
https://en.wikipedia.org/wiki/Catallactics
Note this bit especially - 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."
https://en.wikipedia.org/wiki/Catallactics
Catallactics is a theory of the way the free market system
reaches exchange ratios and prices. 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.
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, objective and of universal validity. It was first used
extensively by the Austrian School economist Ludwig von
Mises.[citation needed]
Catallactics is a praxeological theory, the term catallaxy being
used by Friedrich Hayek to describe "the order brought about by
the mutual adjustment of many individual economies in a
market."[1] 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."[2]
According to Mises (Human Action, page 3) and Hayek[3] it was
Richard Whately who coined the term "catallactics". Whately's
Introductory Lectures on Political Economy (1831) reads:[4]
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."
