Animal Spirits
How Human Psychology Drives the Economy, and Why It Matters for Global Capitalism
in:
Economics
Summary:
The book delves into the psychological factors that influence economic decisions, arguing that traditional economic theories often overlook the impact of emotions, beliefs, and irrational behavior. It explores how these "animal spirits" contribute to financial crises and economic fluctuations, and suggests that understanding them is crucial for effective economic policy and global capitalism management.
Key points:
1. Animal Spirits: Keynes' concept of "animal spirits" describes how emotions affect economic choices. Akerlof and Shiller believe these non-rational behaviors, like confidence or fear, are crucial in economics and often overlooked by models assuming rationality.
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