Animal spirits (Keynes)

As Animal Spirits (German, animalistic instincts ', sometimes with, spirits ' [ from Latin spiritus animales ] reproduced) are irrational elements in economic activity, as unreflective instincts, emotions, and herd behavior referred to in the opinion of Keynesians to economic fluctuations and can cause involuntary unemployment. The term was used by John Maynard Keynes ' General Theory of Employment, Interest and Money " in 1936.

In it, he defines Animal Spirits as follows:

"Even apart from the instability due to speculation, there is the instability due to the characteristic of human nature did a large proportion of our positive activities depend on spontaneous optimism rather than mathematical expectations, Whether moral or hedonistic or economic. Most, probably, of our Decisions to do something positive, the full Consequences of whichwill be drawn out over many days to come, can only be taken as the result of animal spirits - a spontaneous urge to action rather than inaction, and not as the outcome of a weighted average of quantitative benefits multiplied by quantitative probabilities. "

" Apart from the instability that arises due to speculation, instability is also apparent from the human nature, due to which a large part of our positive activities that they are moral or hedonistic or economic nature, depends of spontaneous optimism rather than mathematical calculations. Probably most decisions can do something positive, the full effects will extend over many future days, only be attributed to spirits - on a sudden impulse to action, rather than inaction, and not to the weighted average of quantitative benefits multiplied by quantitative probabilities. "

In the opinion of Robert Shiller and George Akerlof consideration irrational psychological motives was largely suppressed by the supporters of Keynesianism in the interpretation of the General Theory, in order to better adapt the theory to the prevailing mainstream, which, in principle, imputed economic agents to behave rationally. The two authors come to a reinterpretation of the Keynesian economics, is to be met with the current problems of globalization and financial market regulation. Thus, they are among the prominent representatives of a revival of Keynesian economics after the financial crisis in 2007. Establish you in the interpretation of animal spirits to new insights of behavioral economics and make them fruitful for the macroeconomic analysis.