animal spirits: meaning, definition, pronunciation and examples
Low (C2)Formal, Academic, Literary
Quick answer
What does “animal spirits” mean?
A term describing a state of spontaneous, energetic confidence, optimism, or enthusiasm that drives economic activity, investment, and decision-making.
Audio
Pronunciation
Definition
Meaning and Definition
A term describing a state of spontaneous, energetic confidence, optimism, or enthusiasm that drives economic activity, investment, and decision-making.
More broadly, it can refer to a natural, instinctive vitality or exuberance in human behavior, often linked to emotional, psychological, or physiological drives.
Dialectal Variation
British vs American Usage
Differences
No significant differences in meaning or usage. The term is equally rare and specialized in both varieties.
Connotations
In both: carries connotations of irrational or instinctive psychology influencing rational markets.
Frequency
Very low frequency, almost exclusively in academic economics, behavioral finance, or literary/philosophical texts. Slightly more frequent in British economic commentary historically.
Grammar
How to Use “animal spirits” in a Sentence
[Economic activity/Investments] are driven by animal spirits.A lack of animal spirits can lead to [stagnation/a downturn].Vocabulary
Collocations
Examples
Examples of “animal spirits” in a Sentence
verb
British English
- The Chancellor hoped to animal-spirit the economy into recovery. (very rare, non-standard)
American English
- The Fed's policies aimed to animal-spirit the markets. (very rare, non-standard)
adverb
British English
- The market moved animal-spiritedly, without clear rationale. (extremely rare, theoretical)
American English
- Investors acted animal-spiritedly, following the crowd. (extremely rare, theoretical)
adjective
British English
- The report discussed the animal-spirits-driven nature of the boom. (hyphenated attributive use)
American English
- We saw an animal-spirits rally in the tech sector. (hyphenated attributive use)
Usage
Meaning in Context
Business
Used in financial analysis to explain market movements not based on fundamentals.
Academic
Central term in Keynesian economics and behavioral finance literature.
Everyday
Rare. Might be used metaphorically for general enthusiasm (e.g., 'The team's animal spirits were high after the win').
Technical
A specific concept denoting the non-economic, psychological motivations behind economic decisions.
Vocabulary
Synonyms of “animal spirits”
Strong
Neutral
Vocabulary
Antonyms of “animal spirits”
Watch out
Common Mistakes When Using “animal spirits”
- Using it as a synonym for simple 'happiness' or 'party mood'. Confusing it with 'team spirit'. Treating it as a plural countable noun incorrectly (e.g., 'an animal spirit').
FAQ
Frequently Asked Questions
John Maynard Keynes popularized it in economics in his 1936 book 'The General Theory of Employment, Interest and Money', though the phrase itself is much older.
It is descriptive, not inherently positive or negative. It explains behavior but can lead to both productive booms and destructive bubbles.
It would sound very formal or literary. In everyday talk, words like 'optimism', 'energy', or 'confidence' are more common.
'Animal spirits' specifically imply an instinctive, non-rational, and driving force. 'Market sentiment' is a broader, more neutral term for the prevailing attitude.
A term describing a state of spontaneous, energetic confidence, optimism, or enthusiasm that drives economic activity, investment, and decision-making.
Animal spirits is usually formal, academic, literary in register.
Animal spirits: in British English it is pronounced /ˈænɪməl ˈspɪrɪts/, and in American English it is pronounced /ˈænəməl ˈspɪrɪts/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “None directly; it is itself an idiomatic phrase.”
Learning
Memory Aids
Mnemonic
Imagine investors behaving like excited animals at a market, not based on logic but on raw instinct and herd energy.
Conceptual Metaphor
THE ECONOMY/MARKET IS A LIVING BODY (with instincts and emotions). CONFIDENCE IS A VITAL FORCE/ENERGY.
Practice
Quiz
In which field is the term 'animal spirits' a key technical concept?