Meaning: Describes human emotion that drives consumer confidence.
A term used by John Maynard Keynes in his 1936 publication (“The General Theory of Employment, Interest and Money”), animal spirits emphasizes the importance of confidence and the ‘gut instincts’ of businessmen on their future business prospects. It also refers to the risk involved in taking decisions which invariably have an element of risk attached to it. The term itself is drawn from Latin – spiritus animales, which may be interpreted as the spirit that drives human thought, feeling and action.
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