It’s part of a self narrative.
William James defined people as once born and twice born. Once born people go through the world seeing it for the first time and just accepting how it is. Twice born people seem to have an internal observer who is watching things happen and commenting on them. Most of my psychology class at U were twice born. It is easy for the internal narrator to either become partly identified with an imaginary friend or to add one in to its observation of day by day events.
It is not related to IQ but the twice born have an advantage when it comes to imagination and writing narrative, since they do it all the time.
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