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Some Remarks on Convention in Keynes's Economic Thinking

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  • Elke Muchlinski

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    (Free University of Berlin, Department of Economics)

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    Abstract

    The purpose of this paper is to explain why Keynes revolutionized economic theory. He developed an epistemological approach to economic theory by integrating the categories of knowledge, ignorance, rational degree and precariousness. He abandoned constructivism because he rejected empty concepts as dry dones. He also left empiricism and realism behind since he needed to discuss his categories as a priori principles. He viewed bivalent logic as inadequate for his purpose to find solutions on economic problems. To defend his view of uncertainty inherent in all economic decisions he relied on the concepts of degree of credibi¬ity, degree of confidence and conventional judgement. His economic theory can be interpreted as an integrative approach to applied economics.

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    Bibliographic Info

    Paper provided by Departmental Working Papers in its series Papers with number 025.

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    Handle: RePEc:bef:lsbest:025

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    Keywords: Epistemology; mental mapping; decision making under uncertainty;

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