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
Paul KrugmanExamples of animal spirits in a Sentence
Recent Examples on the Web
Market shifts can be brutal, especially in times of economic turbulence, and the fate of the revenue curve is often in the hands of animal spirits guiding the markets.
—Alexander Puutio, Forbes.com, 9 Apr. 2025
Shares dropped more than 13% last week after tariffs quashed animal spirits in the market.
—Alex Harring, CNBC, 7 Apr. 2025
Asian equities ended the week with a thud as Japan, Taiwan, South Korea, Thailand, and Malaysia fell more than -1% as tariff talk (terror?) curtails animal spirits and Indonesia closed for Hindu Saka New Year.
—Brendan Ahern, Forbes.com, 28 Mar. 2025
The iShares National Muni Bond ETF over the past three months Real ‘animal spirits’ Chewy reports in the morning.
—Jason Gewirtz, CNBC, 25 Mar. 2025
See All Example Sentences for animal spirits
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Alexander Puutio, Forbes.com, 9 Apr. 2025
Shares dropped more than 13% last week after tariffs quashed animal spirits in the market.
—Alex Harring, CNBC, 7 Apr. 2025
Asian equities ended the week with a thud as Japan, Taiwan, South Korea, Thailand, and Malaysia fell more than -1% as tariff talk (terror?) curtails animal spirits and Indonesia closed for Hindu Saka New Year.
—Brendan Ahern, Forbes.com, 28 Mar. 2025
The iShares National Muni Bond ETF over the past three months Real ‘animal spirits’ Chewy reports in the morning.
—Jason Gewirtz, CNBC, 25 Mar. 2025
See All Example Sentences for animal spirits
Cite this Entry
“Animal spirits.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/animal%20spirits. Accessed 23 Apr. 2025.
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