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The history of literature will be reconstructed in terms of developmental psychology. From myth over epic, drama, and tragedy to novel there is a historical development of narration discernible. The modern novel, as it has developed over the past centuries, has a greater competence to reflect social and psychological realities, the full complexity and depth of life, than archaic, ancient, and medieval forms of narration. Growth of consciousness and mind both in authors and readers during history is the cause to this advancement of literature. Thus, developmental psychology explains both the development of mind and narrative forms in history.