Animal spirits

Animal spirits is a term popularized by economist John Maynard Keynes, referring to the human emotions and instincts that influence economic decision-making. It describes how confidence, optimism, fear, or hesitation can drive consumers and businesses to spend or invest more or less, often affecting economic growth regardless of rational calculations. When spirits are high, people are more willing to take risks and stimulate the economy; when low, they tend to withdraw, causing slowdowns or recessions. Essentially, animal spirits highlight the importance of psychological factors and collective mood in shaping economic activity.