Grey Relational Method for Evaluating the Macro-Economy Performance with Triangular Fuzzy Information

Abstract

The new theory comes when the current economic circumstance cannot be explained. The Great Depression in 1930s severely smashed the world economy and no explanations and policies were provided by the classical laissez-faire until the Roosevelt New Deal took the world economy out of depression. The macroeconomic theory has been brought out by John Maynard Keynes. Early this century, not only did the US Sub-prime crisis strongly affect the world economy, but also the macroeconomic theory. The development of the macroeconomic theory after the Sub-prime crisis becomes a hot topic. In this paper, we investigate the multiple attribute decision making (MADM) problems for evaluating the macro-economy performance with triangular fuzzy information. Then, we extend the grey relational analysis (GRA) procedure for triangular fuzzy multiple attribute decision making for evaluating the macro-economy performance in triangular fuzzy setting. According to the concept of the GRA, a fuzzy relative relational degree is defined to determine the ranking order of all alternatives by calculating the degree of fuzzy grey relational coefficient to both the triangular fuzzy positive-ideal solution (TFPIS) and triangular fuzzy negative-ideal solution (TFNIS) simultaneously. Finally, an illustrative example for evaluating the macro-economy performance is given to verify the developed approach and to demonstrate its practicality and effectiveness.