Imaginative resistance refers to a phenomenon in which people resist engaging in particular prompted imaginative activities. On one influential diagnosis of imaginative resistance, the systematic difficulties are due to these particular propositions’ discordance with real-world norms. This essay argues that this influential diagnosis is too simple. While imagination is indeed by default constrained by real-world norms during narrative engagement, it can be freed with the power of genre conventions and expectations.

ABSTRACT The financial crisis was caused by the complex, constantly growing web of regulations designed to constrain and redirect modern capitalism. This complexity made investors, bankers, and perhaps regulators themselves ignorant of regulations promulgated across decades and in different “fields” of regulation. These regulations interacted with each other to foster the issuance and securitization of subprime mortgages; their rating as AA or AAA; and previously their concentration on the balance sheets (and off the balance sheets) of many commercial and investment (...) banks. As a practical matter, it was impossible to predict the disastrous outcome of these interacting regulations. This fact calls into question the feasibility of the century‐old attempt to create a hybrid capitalism in which regulations are supposed to remedy economic problems as they arise. (shrink)