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

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Donald Trump’s return to the presidency is expected to end four years of tight regulatory oversight (if not overreach, by some critics’ assessments), setting free the animal spirits repressed amid post-Peak Streaming pullbacks, strikes and other complications. David Bloom, Forbes, 31 Dec. 2024 Washington’s strategy assumes that China is in structural economic decline, its statist approach stifling the animal spirits of an economy at the mercy of the Communist Party and its general secretary, Xi Jinping. Reva Goujon, Foreign Affairs, 27 Dec. 2024 The greatest inventions come from the magical animal spirits of American capitalism: freedom and entrepreneurial zest — hardwired into our souls and our national story. Axios, 25 Dec. 2024 The wild speculative precincts of the market could even reflect a revving of animal spirits that could become a broader upward acceleration – which might then turn into a climactic short-term top. Michael Santoli, CNBC, 7 Dec. 2024 See all Example Sentences for animal spirits 

Word History

First Known Use

15th century, in the meaning defined at sense 1

Time Traveler
The first known use of animal spirits was in the 15th century

Dictionary Entries Near animal spirits

Cite this Entry

“Animal spirits.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/animal%20spirits. Accessed 22 Jan. 2025.

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