animal spirits

plural noun

1

sometimes animal spirit obsolete : the nervous energy that is the source of physical sensation and movement

2

: vivacity arising from physical health and energy

3

in Keynesian economic theory : emotional feelings and desires (such as an optimistic willingness to take positive action) that influence the economic behavior of consumers and investors

If you ask how much consumers will consume and investors invest over the next few months, the answer is determined largely by feelings—what John Maynard Keynes called "animal spirits." If frightened people decide not to spend, their nervousness can translate into a depressed economy.

—Paul Krugman

Examples of animal spirits in a Sentence

Recent Examples on the Web

Perhaps the animal spirit most crucial to forecasting is risk aversion. —Alan Greenspan, Foreign Affairs, 15 Oct. 2013

And while the biotech’s recent recovery is clearly tied to macroeconomic factors, Wednesday’s sudden dip offers few easy explanations beyond investors taking profits, year-end tax-loss selling, and the familiar animal spirits. —Damian Garde, STAT, 22 Dec. 2023

The figures are derived from the fusion of two Zapotec animal spirits, the toná and the nahual. —Elisabeth Malkin, New York Times, 23 Nov. 2023

The central bank wants to dampen Wall Street’s animal spirits and crimp demand for goods and services so inflation returns to a more manageable level and stays there. —Julia Horowitz, CNN, 3 May 2023

Word History

First Known Use

15th century, in the meaning defined at sense 1