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Stream of Consciousness Definition. In literature, stream of consciousness is a method of narration that describes in words the flow of thoughts in the minds of the characters. The term was coined was initially coined by a psychologist William James in his research “The Principles of Psychology”.
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Well technically, a "stream of consciousness" is a person's thoughts and conscious reactions to events, which are perceived as a continuous flow.

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The term was actually first introduced by William James in his "Principles of Psychology."