Final Writing Assignment

Final Writing Assignment - ECO 202 Section F Mr. Michael...

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ECO 202 – Section F Mr. Michael Marron Final Writing Assignment April 29, 2011 The “Unknown” Animal Spirit Animal Spirits: How Human Psychology Drives the Economy , by George A. Akerlof and Robert J. Shiller, explains the emotional roles that influence economic decision making. The effect of these psychological factors in every individual consumer is what drives the economy around every inch of the world. The global market would not exist without the involvement of every single consumer. Akerlof and Shiller explained the thoughts of “Animal Spirits” as the foundation for their book, Animal Spirits: How Human Psychology Drives the Economy , from concepts in The General Theory of Employment, Interest, and Money , written by John Maynard Keynes. As described in the George A. Akerlof and Robert J. Shiller’s book, “The old story about capitalism is correct: it gives us what we think we want. But capitalism does not act as its own policeman if we fail to watch over it and give it proper directions. It actively, competitively, seeks the most profit-maximizing opportunities. Capitalism will follow such opportunities wherever they lead us. That, of course, is relevant for the recent world financial crisis. The recession, deep as it has been, has been losing their jobs, their houses, and their dreams. But recessions do have at least one silver lining: the cut they take into economic life reveals how capitalist societies really work. To give one example, Keynes’ General Theory , written in the heart of the depression, gave us for the first time an understanding of how macro-economies really behave. That is why it was so inspiring, promoting Paul Samuelson to say, in 1946, that the Keynesian revolution, which appeared during the Great Depression, has infected the thinking of virtually every economist.
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But as the memory of the Great Depression has faded, so too has appreciation and understanding of Kaynesian theory.” Animal Spirits: How Human Psychology Drives the Economy was completed after the financial crisis in the United States between 2007 and 2008. The authors want the U.S. government to take a much more aggressive approach in handing the national events from recent years.
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Final Writing Assignment - ECO 202 Section F Mr. Michael...

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