Reflexivity in Financial Markets
So far I have delved into the realm of abstractions. I asserted that there is a two-way connection between thinking and reality which, when it operates simultaneously, introduces an element of uncertainty into the participants’ thinking and an element of indeterminacy into the course of events. I called this two-way connection reflexivity, and I asserted that reflexivity distinguishes unique, historical developments from humdrum, everyday events. Now I must provide some concrete evidence that such reflexive developments actually occur and that they are historically significant.
For this purpose, I shall turn first not to political history but to the financial markets. The financial markets offer an ...