Which term did John Maynard Keynes use to describe the instincts and emotions that influence human behavior?

John Maynard Keynes coined the term "Animal Spirits" to describe the instincts and emotions that drive human behavior, particularly in the context of economic decision-making. In his work, Keynes highlighted how psychological factors, such as confidence, fear, and other emotional states, significantly influence the choices individuals make, especially during times of uncertainty and volatility in the markets. He believed that these "animal spirits" could lead to fluctuations in economic activity, illustrating the importance of psychological elements in driving market movements.

Keynes emphasized that economic agents do not always act rationally; instead, their decisions are often swayed by their emotions and instincts. This idea underscores the link between psychology and economics, and it has had a lasting impact on the way we understand market behavior and economic cycles.

Terms such as "Cognitive Dissonance" and "Behavioral Economics" relate to psychological influences on decision-making but do not specifically capture the emotional and instinctive aspect that Keynes focused on with "Animal Spirits." "Market Sentiment" pertains more broadly to the overall attitude of investors toward a particular market or financial instrument rather than the underlying instincts and emotions that motivate those attitudes.