confabulation

Confabulation
related: story

In psychology, confabulation is a memory disturbance, defined as the production of fabricated, distorted or misinterpreted memories about oneself or the world, without the conscious intention to deceive. Confabulation is distinguished from lying as there is no intent to deceive and the person is unaware the information is false. - http://en.wikipedia.org/wiki/Confabulation

Wikipedia
http://en.wikipedia.org/wiki/Confabulation

Elsewhere on the Web
http://aeon.co/magazine/psychology/how-a-hero-narrative-can-transform-the-self/