Animal Spirits
Categories: Econ, International, Company Management
Neither a form of alcohol brewed from ground-up camel bones, nor a form of witchcraft centered on controlling zombie squirrels, the term "animal spirits" actually applies to economics. John Maynard Keynes - perhaps the most famous economist of the 20th century - coined the term to describe the psychological factors that play into an economy.
Economists often pretend that what they do conforms to hard, natural laws, like in physics. But since individual human decisions add up to the movement of an economy, a psychological component does factor into the equation. Keynes, a native of the U.K. and therefore prone to typical British cheekiness, gave the term "animal spirits" to these factors, which include things like consumer confidence and the fear or greed that can drive stock markets.
