Animal Spirits (Keynes)

Animal spirits are the feelings and emotions that affect people's economic decisions. They include things like optimism, fear, and greed. John Maynard Keynes, a famous economist, suggested that these feelings could have an important influence on how the economy works. He believed that people's decisions are affected not just by their logical thinking, but also by their feelings. For example, if people felt optimistic, they might be more willing to buy things and make investments than if they felt scared or pessimistic. This could affect the entire economy, creating a cycle of growth or hardship.