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Probability and Economics

In: On Keynes’s Method

Author

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  • Anna M. Carabelli

    (University of Pavia)

Abstract

In various passages Keynes stressed that most of the economic material possessed the attributes of ‘complexity’ set out in A Treatise on Probability, and were therefore not immediately susceptible to analytical tools (e.g. CW V, p. 88; VII, p. 247; XIV, pp. 121, 286, 294, 300, 316). The best definition of this concept of complexity can be found in A Treatise on Money, where Keynes, referring explicitly to his discussion in Chapter 3 of A Treatise on Probability, explained that the concepts ‘complex or manifold’ were to be understood ‘in the sense that they are capable of variations of degree in more than one mutually incommensurable direction at the same time’ (CW V, p. 88).

Suggested Citation

  • Anna M. Carabelli, 1988. "Probability and Economics," Palgrave Macmillan Books, in: On Keynes’s Method, chapter 9, pages 151-172, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-19414-8_9
    DOI: 10.1007/978-1-349-19414-8_9
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