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

On the surface, Stargate serves up more red meat for the animal spirits of AI. —R. Scott Raynovich, Forbes, 23 Jan. 2025

This comes as animal spirits gain new life on the Street, with President Donald Trump kicking off his second term with dozens of executive orders — raising expectations for deregulation and lower corporate taxes. —Fred Imbert, CNBC, 22 Jan. 2025

From trade wars to animal spirits, from crypto surges to European soul-searching, Day One in Davos played out like a preview of the year ahead. —Jackie Snow, Quartz, 21 Jan. 2025

To goose Big Oil’s animal spirits, Trump revoked a slew of Biden’s executive orders targeting the industry. —Christopher Helman, Forbes, 21 Jan. 2025

Word History

First Known Use

15th century, in the meaning defined at sense 1