Abstract: This paper extends subjective expectations theory to form a new approach called the discovering markets hypothesis (DMH). Market participants form expectations on the basis of subjective knowledge and communicate with each other through narratives to improve their understanding of factual information before acting in markets. Thus, market prices are shaped by the subjective interpretation of emerging facts and shared narratives. To understand how new narratives replace existing ones, we refer to the theory of scientific revolutions.

Narrative Economics: How Stories Go Viral and Drive Major Economic Events
Robert J. Shiller
Princeton: Princeton University Press, 2019
xxi + 377 pp.

The Bitcoin Standard: The Decentralized Alternative to Central Banking
Saifedean Ammous
Hoboken, N.J.: John Wiley and Sons, 2018
xviii + 286 pp.

Abstract: This paper extends Austrian business cycle theory to the command economy and demonstrates that Mises’s socialist commonwealth would not be free from Rothbardian error cycles, which J.

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The coerced economic “shutdowns”—enforced with fines, arrests, and revoked business licenses—are not the natural outgrowth of a pandemic. They are the result of policy decisions taken by politicians who have suspended constitutional institutions and legal recognition of basic human rights.