We know that we are all came from human evolution takes places from animals and there is no change or doubt in that . True right? Yes, then definitely we should have some characteristics of animal ! Well imagine my brother would have the character of monkey , my dad who always very firm in things who have the character of cheetah, and yes mom is the sweetest who taught me this characteristic:)
What does Animal spirit mean?
Animal spirits refers to the term that describes about the behaviour which helps guide or protect a person on a journey and whose characteristics that person shares or embodies. It is also a metaphor, often humorous, for someone or something a person relates to or admires.
Animal spirits in Economics
This concept was first introduced by John Maynard Keynes used in his 1936 book in The General Theory of Employment, Interest and Money to describe the instincts, proclivities and emotions that ostensibly influence and guide human behavior, and which can be measured in terms of, for example, consumer confidence. It has since been argued that trust is also included in or produced by “animal spirits”.
Conventional economic analysis confines itself to rational, quantifiable facts. However, economic decision makers are often intuitive, emotional and irrational. John Maynard Keynes coined the term “animal spirits” to refer to emotional mindsets. Confidence or lack of it can drive or hamper economic growth. – ET
Book review of animal spirits
This book was written by Akerlof, a Nobel laureate, and Shiller, a good bet to become one, are prominent mainstream economists. ‘ How psychology drives the economy, and why it matters for global capitalism’ a shot description in the cover of the book tells about it.The global financial crisis has made it painfully clear that powerful psychological forces are imperiling the wealth of nations today. From blind faith in ever-rising housing prices to plummeting confidence in capital markets, “animal spirits” are driving financial events worldwide. In this book, acclaimed economists George Akerlof and Robert Shiller challenge the economic wisdom that got us into this mess, and put forward a bold new vision that will transform economics and restore prosperity.
Today in finance, the term animal spirits arise in market psychology and behavioral economics. Animal spirits represent the emotions of confidence, hope, fear, and pessimism that can affect financial decision making, which in turn can fuel or hamper economic growth.