Industry NewsMarkets & Economy

Psychological barriers to a healthy economy

Book Review: 'Animal Spirits'
Published on Jul 13, 2009

Get Inman via Facebook Messenger
Our top headlines delivered once a day.
by CareyBot

Ever wonder why a seemingly slam-dunk deal suddenly gets thrown off the rails even though none of the terms have changed?

Perhaps you should blame "animal spirits" gone awry, a term economist John Maynard Keynes coined in the middle of the Great Depression to describe the type of "naive optimism" that is a necessary ingredient for businesses to invest, for entrepreneurs to take risks -- and for potential homebuyers to sign those documents at the closing table.