Reflexivity
Reflexivity in economics is the theory that a feedback loop exists in which investors' perceptions affect economic fundamentals, which in turn changes investor perception. The theory of reflexivity has its roots in sociology, but in the world of economics and finance, its primary proponent is George Soros. Soros believes that reflexivity disproves much of mainstream economic theory and should become a major focus of economic research, and even makes grandiose claims that it "gives rise to a new morality as well as a new epistemology."
Reflexivity
Definition
Reflexivity is a theory in economics and finance that posits a feedback loop where investors' perceptions and actions influence economic fundamentals, and changes in economic fundamentals, in turn, affect investors' perceptions and actions. This bidirectional interaction makes market behavior and economic phenomena more complex and difficult to predict.
Origin
The theory of reflexivity originally comes from sociology, but its main proponent in the field of economics and finance is the renowned investor George Soros. Soros has frequently mentioned reflexivity theory throughout his investment career, arguing that it challenges most mainstream economic theories and should be a focal point of economic research. He even claimed that reflexivity
