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An economist might say something like, "the latent animal spirits of India have been awakened by the inception of the neoliberal economy." Or so I understand. Help finding the source of this phrase?

2007-03-03 08:29:19 · 1 answers · asked by Anonymous in Social Science Economics

1 answers

Ah, easy one....

He used it in his 1936 book: The General Theory of Employment Interest and Money.
1. Animal Spirits and Economics
The term “Animal Spirits” is closely associated with John Maynard Keynes who used it in his 1936 book, The General Theory of Employment Interest and Money to capture the idea that aggregate economic activity might be driven in part by waves of optimism or pessimism: (although Robin Mathews 1984, points out that Keynes would have been aware of its use by David Hume 1739, Part iv, Section vii).
"Most, probably, of our decisions to do something positive, the full consequences of which will 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."
(The General Theory of Employment Interest and Money, 161-162)

2007-03-05 14:50:59 · answer #1 · answered by Santa Barbara 7 · 1 0

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