Using Keynes’s Conventional Coefficient of Weight and Risk, C, From Chapter 26 of His a Treatise on Probability, to Help Explain Keynes’s Three Equations in Chapter 17 of the General Theory That Integrate (A) Expectations (Probability, Linear Risk), (B) Liquidity (Uncertainty, Weight of the Evidence, W) And (C) The Risk of Appreciation/Depreciation, a (Nonlinear Risk), One at a Time Sequentially ...

The mathematical equations Keynes wrote out in chapter 17, in explaining his generalization of his theory of liquidity preference, are simplifications of his conventional coefficient of weight and risk, c ,that were used by Keynes to integrate non additivity(V(a/h)=w)and non linearity{[1/(1+q)]} into a more advanced formula that generalized the linear and additive mathematical expectation, pA, which only used probability(risk),to incorporate both liquidity preference(w) ,l, and the risk of appreciation/depreciation, a(1/1+q),as cA, where c=(p)(2w/[1+w]) {1/(1+q)}(A).Sraffa and all economists following his extremely misleading scribbled margin notes in his copy of the General Theory in chapter 17 are basically using pA. Liquidity preference has absolutely NOTHING to do with probability.The result has been that chapter 17 of the General Theory, which is quite obvious in its presentation to a reader of chapters 6 and 26 of the A Treatise on Probability, has been made into an immense intellectual mess by ignorant economists trying to explain Keynes’s theory of liquidity preference with the concept of probability only, which Sraffa, aping Ramsey, considered to be numerical only.Keynes’s footnote on page 240,like the footnote on p.148, explicitly linked his discussions in chapter 17 of liquidity and uncertainty to chapters 6(26) of the A Treatise on Probability. I can find only one presentation made since 1936 that is generally correct, that of T. Oka, which, however, does not mention the A Treatise on Probability