Friedrich Hayek

Austrian and British economist (1899–1992)

economic theory

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 their 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, empirical, and of universal validity. It was used extensively by the Austrian School economist Ludwig von Mises.

information that is spread throughout the market and not in the hands of a single agent

Economics and sociology concept