ABSTRACT
When beliefs are fluid, economic theory can have a stabilizing function. If the beliefs of a sub-class of individuals (economists or market analysts) enjoy a particular epistemic authority, they will tend to influence the views of other participants. This process of imitation is analogous to the dynamics described above, and may direct behaviour towards or away from a specific equilibrium. This is the sense in which social theorizing can influence reality, a feature that many philosophers – including Soros – consider truly distinctive compared to natural scientific theorizing.2
