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 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

Between the lines: The American miracle rests on untamed democracy, the animal spirits of capitalism, the magic of unrestrained innovation, and the soft power of a vigilant and vibrant free press. —Jim Vandehei, Axios, 3 Dec. 2024

More from Personal Finance: The 2025-26 FAFSA is open ahead of schedule What ‘animal spirits’ mean for your investing How to pay 0% capital gains taxes on bitcoin Karoline Leavitt, a spokeswoman for the Trump-Vance transition, said the president-elect would follow through with his pledge. —Greg Iacurci, CNBC, 20 Nov. 2024

Astrology is gaining steam as a means of intuiting the market’s animal spirits. —Melvin Backman, Quartz, 13 Nov. 2024

Word History

First Known Use

15th century, in the meaning defined at sense 1