Patrick Schotanus's Contributions

Book Interview - The Market Mind Hypothesis: Understanding Markets and Minds Through Cognitive Economics

Nov 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...

Patrick Schotanus on Cognitive Economics and the Market Mind Hypothesis

May 17 – FS Insider speaks with Patrick Schotanus, visiting professor at the Edinburgh Business School and the lead developer of the market mind hypothesis at the center of the cognitive economics movement. Patrick explains how the market...

Inside the Market’s Mind: Mind-Matter Issues of the Intangible Crypto Economy

By Patrick Schotanus – Cryptocurrencies, or simply cryptos, are all the rage these days. Bitcoin’s rise to fame has become exponential and its price is approaching $20,000, after starting the year around $1000. Bankers, including central ones, have expressed...

Trump’s Speech, Europe Elections, and Political Soapbox Opera

Doris has passed, other storms may be brewing, but is spring approaching? Metaphorically, this is what investors have been wondering as the reflation trade gathered steam. The economic outlook undoubtedly looks bright with macro...

Inside the Market's Mind: Halloween Edition - Clowns, Balloons, and Scary Times

The myth of the killer (or evil) clown has a long history, dating back to at least the nineteenth century. Apart from Stephen King’s Pennywise, modern culture has produced a number of exemplary specimens, including the Joker in the Batman movies. It is their “double-faced” trickery...

Goldilocks and Stagflation

Stagflation combines the worst extremes of a deflationary bust with an inflationary boom. Parts of the global economy risk entering a phase of stagflation - and Brexit could make the UK an early victim. Metaphorically speaking...

Inside the Market’s Mind: Central Bankers’ Biases

I trust that many of you are familiar with the story of Peter Pan, in which it says, ‘the moment you doubt whether you can fly, you cease forever to be able to do it’. Yes, what we need is a positive attitude and conviction. Indeed, each...

Patrick Schotanus on the Archetypal Market Hypothesis (Part 2)

Oct 1 – In part two of this two-part interview, Patrick describes his groundbreaking Ph.D. research of viewing modern finance through the lens of complex psychology, where the human mind and its extensions (including the market) are...

Patrick Schotanus on the Archetypal Market Hypothesis (Part 1)

Sep 30 – In part one of this two-part interview, Patrick describes his groundbreaking Ph.D. research of viewing modern finance through the lens of complex psychology, where the human mind and its extensions (including the market) are...

Inside the Market’s Mind: Wetlands and Debtlands

Normally, nature determines the boundaries between land and sea. Dunes, riverbeds, and cliffs are examples of natural boundaries. But we humans have not always been content with nature’s laws and decided to move the boundaries or create our own...

Inside the Market’s Mind: Productivity, Growth and In(ter)ventions

Productivity is hot. As a topic that is. As a measure, however, it has cooled as Chart 1 below shows for both emerging and developed markets. In the US, the Bureau of Labor Statistics just reported the first sequential...

Inside the Market’s Mind: Debt, Growth and Politics

Looking at growth and debt beyond developed countries, Moody’s forecasts that GDP growth for 2014 across the 20 largest emerging markets, excluding China, will only amount to 2.1%. Data from Thomson Reuters shows that 2014 is turning into a record year for issuing...

Inside the Market's Mind: Investment’s Hard Problem...and Why It Can’t Be [Quantitatively] Eased

A number of researchers (most recently Nassim Taleb with his anti-fragility thesis) have pointed out that repressing naturally occurring behavior, for example because it is unpleasant, will exactly cause it to build up, sometimes elsewhere in the system.

Inside the Market’s Mind: An Invisible Gorilla as the Elephant in the Room

We live in a world of big and growing data, where investors are “forward guided” to focus on particular areas, like unemployment, corporate earnings and regulations.

Inside the Market’s Mind: Economic Equality and Conscience

A Mulit-layered Imbalance

As economic inequality grows, measured for example by the Gini coefficient for countries like the UK, US and China, so does the attention to this problem.

Inside the Market’s Mind: Lehman’s Lesson: Market ≠ Machine

We just ‘celebrated’ the fifth anniversary of the demise of Lehman. Let’s go back to that moment, in 2008. Do you remember how it felt? Those of us who were ‘in the market’ at the time most vividly do.

Inside the Market's Mind: Data and Other Dependencies

Recently, in what has become known as his “Tapering speech”, Ben Bernanke, Chairman of the US Federal Reserve, upset investors when he implied that quantitative easing (QE), the buying of bonds by the Fed to suppress yields, was likely to be scaled down or ‘tapered’.

Inside the Market’s Mind: Quicksilver and Money

In light of the potential tapering of quantitative easing investors are trying to read the mind of US Federal Reserve Chairman Ben Bernanke. A good starting point is to explore his papers and speeches for clues.

Inside the Market’s Mind: The Zombie Market, A Thought Experiment

Earlier this month the Bank of England warned of the dangers to the economy of ‘zombie’ households, companies and banks. Let’s consider a zombie bank. It is an ‘undead’ bank, a corporate corpse allowed to walk but without free will.

Inside the Market's Mind: The illusion of money

Like other seminal events which have become part of human history, financial booms and busts reflect myths, the often surreal narratives about heroes, villains and treasure, which capture symbolically the meaning of such experiences.

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