November 29, 2023 – FS Insider interviews Patrick Schotanus about his newly-released book, The Market Mind Hypothesis. By drawing on the lessons of cognitive economics, epistemology, and other fields of research, Patrick provides a comprehensive challenge to the highly model-driven, mechanistic economic paradigm of today to present a much richer and human-oriented alternative called the Market Mind Hypothesis (MMH), which suggests that the market has a mind, personality, and moods that emerge collectively from its participants. The author delves into the work of Adam Smith, Frederick Hayek, David Chalmers, and many others to explain the economy as the physical body of society and the financial markets as the collective mind where price signals reflect the full range of human experience in coordinating economic activity. By elucidating this stark contrast between modern economics via the EMH and what Patrick describes via the MMH, one can see the fatal flaw in much of today's policymaking both in how they help to precipitate crises and the manner in which they often try to address them. This is a groundbreaking and must-read book for anyone that wants to understand the economy and markets from the lens of cognitive economics and philosophy, not to mention the lessons it has for us individually.
Pick up the book on Amazon: The Market Mind Hypothesis: Understanding Markets and Minds Through Cognitive Economics
Follow more of Patrick's work at Market Mind | Pushing the frontiers of how we understand markets and the minds they embody.