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

The idea that the press conference was deliberately done to cool animal spirits is ridiculous, IMO. —Brendan Ahern, Forbes, 9 Oct. 2024

The Mainland market continues to lack animal spirits as consumer confidence remains low due to falling real estate prices' effect on household savings. —Brendan Ahern, Forbes, 18 Sep. 2024

Hopefully, the mortgage refinancing will release some animal spirits! —Brendan Ahern, Forbes, 12 Sep. 2024

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

Word History

First Known Use

15th century, in the meaning defined at sense 1