Fuzzy logic and Keynes's speculative demand for money

Citation

Dow S & Ghosh D (2009) Fuzzy logic and Keynes's speculative demand for money. Journal of Economic Methodology, 16 (1), pp. 57-69. https://doi.org/10.1080/13501780802684260

Abstract
The purpose of the paper is to explore the potential for using fuzzy logic to analyse economic decision-making under Keynesian uncertainty, and in particular in circumstances where variety of opinion is important. Fuzzy logic is shown to apply where expectations may differ because the nature of the subject matter impedes any ‘crisp’ way of describing the underlying variables. The particular case of the speculative demand for money is considered, since it explicitly reflects variety of opinion as to whether interest rates are ‘high’ or ‘low’.

Keywords
Fuzzy logic; liquidity preference; diversity of opinion; Fuzzy logic; Keynesian economics; Demand for money Mathematical models; Decision making Economic aspects

Journal
Journal of Economic Methodology: Volume 16, Issue 1

People

Professor Sheila Dow

Emeritus Professor, Economics