Abstract

http://ssrn.com/abstract=2178920
 
 

Citations



 


 



Phantastic Objects and the Financial Market's Sense of Reality: A Psychoanalytic Contribution to the Understanding of Stock Market Instability


David Tuckett


University College London (UCL)

Richard Taffler


Manchester Business School

June 21, 2007

International Journal of Psychoanal, Vol. 89, No. 2, pp. 389-412, April 2008

Abstract:     
This paper sets out to explore if standard psychoanalytic thinking based on clinical experience can illuminate instability in financial markets and its widespread human consequences. Buying, holding or selling financial assets in conditions of inherent uncertainty and ambiguity, it is argued, necessarily implies an ambivalent emotional and phantasy relationship to them. Based on the evidence of historical accounts, supplemented by some interviewing, the authors suggest a psychoanalytic approach focusing on unconscious phantasy relationships, states of mind, and unconscious group functioning can explain some outstanding questions about financial bubbles which cannot be explained with mainstream economic theories. The authors also suggest some institutional features of financial markets which may ordinarily increase or decrease the likelihood that financial decisions result from splitting off those thoughts which give rise to painful emotions. Splitting would increase the future risk of financial instability and in this respect the theory with which economic agents in such markets approach their work is important. An interdisciplinary theory recognizing and making possible the integration of emotional experience may be more useful to economic agents than the present mainstream theories which contrast rational and irrational decision-making and model them as making consistent decisions on the basis of reasoning alone.

Accepted Paper Series


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Date posted: November 21, 2012  

Suggested Citation

Tuckett, David and Taffler, Richard, Phantastic Objects and the Financial Market's Sense of Reality: A Psychoanalytic Contribution to the Understanding of Stock Market Instability (June 21, 2007). International Journal of Psychoanal, Vol. 89, No. 2, pp. 389-412, April 2008. Available at SSRN: http://ssrn.com/abstract=2178920

Contact Information

David Tuckett (Contact Author)
University College London (UCL) ( email )
Gower Street
London, WC1E 7HU
United Kingdom
HOME PAGE: http://www.ucl.ac.uk/psychoanalysis/unit-staff/david.htm
Richard J. Taffler
Manchester Business School ( email )
Crawford House
Oxford Road
Manchester M13 9PL
United Kingdom
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