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.
[6] The term catallactics or catallaxy, respectively, comes from the Greek verb καταλλάσσω which means to exchange, to reconcile.
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.
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.