41) What is meant by “animal spirits” in Keynesian analysis?How does the level of animal spirits affect economic activity?Use the concept to explain the downturn in economic activity since 2008.

41) What is meant by “animal spirits” in Keynesian analysis?How does the level of animal spirits affect economic activity?Use the concept to explain the downturn in economic activity since 2008.
41) What is meant by “animal spirits” in Keynesian analysis?How does the level of animal spirits affect economic activity?Use the concept to explain the downturn in economic activity since 2008.

41) What is meant by “animal spirits” in Keynesian analysis?How does the level of animal spirits affect economic activity?Use the concept to explain the downturn in economic activity since 2008.
1.A term used by John Maynard Keynes used in one of his economics books.In his 1936 publication,"The General Theory of Employment,Interest and Money," the term "animal spirits" is used to describe human emotion that drives consumer confidence.According to Keynes,animal spirits also generate human trust.
2.The value of individuals’ assets is growing:animal spirits are high; the value of individuals’ assets are declining; one has lost his house,lost his car; lost his job:is homeless and cold:animal spirits are low.What is this?At some point between the first derivative of money supply growth in the real economy and corresponding asset valuation growth and the first derivative of money supply decline in the real economy and correlative asset valuation decline,animal spirits too under correlative transition.
3.When investors' judgment grows that the speculative stock market would be deserted by bank loans,they are alerted that the rapid rise in stock prices over the past months should be largely attributed to their primitive "animal spirits" - a particular sort of confidence based on herd mentality.Thus,when the government shows increased determination to prevent the country's much-needed industrial structure adjustment from being interrupted by the excessively prosperous capital market and began to funnel a flood of bank loans into the real economic projects,the previously stimulated "animal spirit" among investors has been finally overwhelmed by their pessimism.However,any loosening of monitoring of bank lending will once again inflame the irrational animal spirits in the stock market.That would be extremely unfavorable to the healthy development of the stock market.