February 23, 2020

ECLECTICS:WHAT DID WE LEARN FROM KEYNES?PART 27

placed emphasis on the motivation and intentionality of the human agency.However they entertained divergent credence on how the explanation of thought and action are contrived in economics including beliefs or how their conceptions are formed.Hayek based his explanation on the evolutionary theory of human psychology,Keynes based his viewpoint in probable reasoning to govern belief formation,specifically where probability is a logical concept.Individuals act rationally following rules in a psychological premise and Hayek also maintained that conventional expectations as the basic guide for agents in economic life.Keynes agreed conventional expectations truly guide economic behaviour,but justified only in position of total ignorance.In this context or condition,agents tend to based their actions in reasonable expectation freed from conventions.Hence,it is expedient for mordern institutions guiding economic policy to avoid the negative consequences of such conventional pitfalls.The theory of logical probability

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