I came across a new word today in James M Buchanan’s Essays on the Political Economy. In his second essay, The Public Choice Perspective, he says:
I shall refer in the following discussion to two separate and distinct aspects of elements in the public-choice perspective. The first aspect is the generalized “catallactics” approach to economics. The second is the more familiar homo economicus postulate concerning individual behavior. These two elements, as I shall try to demonstrate, enter with differing weights in the several strands of public-choice theory, inclusively defined.
He goes on to explain what the catallactic part of the economy means as used in his POV.
The approach to economics that I have long urged and am urging here was called by some nineteenth-century proponents “catallactics,” the science of exchanges. More recently, Professor Hayek has suggested the term “catallaxy,” which he claims is more in keeping with the proper Greek origins of the word. This approach to economics, as the subject matter for inquiry, draws our attention directly to the process of exchange, trade, or agreement to contract.
Then he elaborates to distinguish traditional economics as the exchange between two individuals, versus the catallactic form as an exchange between groups of people.
If we take the catallactics approach seriously, we then quite naturally bring into the analysis complex as well as simple exchange, with complex exchange being defined as that contractual agreement process that goes beyond the economist’s magic number “2,” beyond the simple two-person, two-commodity barter setting. The emphasis shifts, directly and immediately, to all processes of voluntary agreement among persons.
This seems like more than a point of view. This is the foundational understanding of the comprehensive economic apparatus.