27/11/2025
In economics, "animal spirits" refer to the non-rational, emotional, and psychological factors like confidence, fear, and optimism that influence human economic behavior and decision-making. The term was popularized by economist John Maynard Keynes in his 1936 book, The General Theory of Employment, Interest, and Money, to explain why economic outcomes are not always the result of purely logical calculations. These sentiments can cause economic fluctuations, as high confidence can spur investment and spending, while fear and pessimism can lead to reduced economic activity.