Animal spirits
Animal spirits is a feeling that is driven by happy talk and high spirits rather than cool reasoning.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Animal spirits. John Maynard Keynes, writing during the 1920s and 1930s, suggested that - after a period of rising prosperity and stock prices—investors begin to think that the good times will last forever, a feeling that is driven by happy talk and high spirits rather than cool reasoning.
According to Principles of Economics by Timothy Taylor (3rd edition),
- Accommodating policy. A policy that yields to the effect of a shock and thereby prevents the shock from being disruptive; for example, a policy that raises aggregate demand in response to an adverse supply shock, sustaining the effect of the shock on prices and keeping output at its natural level.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
