Animal Spirits

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Review Animal Spirits: How Human Psychology Drives the Economy, and Why It Matters for Global Capitalism 

by GEORGE AKERLOF and ROBERT SHILLER

Description

In an attempt to challenge the existing economic wisdom that led to major financial fiascos, George Akerlof and Robert Shiller collaborate to write a powerful reading that will transform our minds toward economics. This book also promises to bring us to the new financial paradigm and bring back prosperity within our grasps.

Answering the whys of the financial breakdowns covering all economic aspects, Animal Spirits is a showcase of establishing a significant role in economic policymaking by representing the psychology of the economy that led to catastrophic financing. Ultimately, the book shows readers a way out of the financial mishaps by reshaping human thinking and making the necessary change in approach to the economic systems.

About the Authors

George Akerlof is teaching Economics at the University of California. He is a recipient of the Nobel Prize in economics in the year 2001.

Robert Shiller is also a professor of economics at Yale University and a prolific author of several books, including his collaboration with Akerlof in Animal Spirits

Table of Contents

The book parades the following topics:

Part One: Animal Spirits

One – Confidence and Its Multipliers

Two – Fairness

Three – Corruption and Bad Faith

Four – Money Illusion

Five – Stories

Part Two: Eight Questions and Their Answers

Six – Why Do Economies Fall into Depression

Seven – Why Do Central Bankers Have Power the Economy (Insofar as They Do)?

Postscript to Chapter Seven – The Current Financial Crisis: What is to Be Done?

Eight – Why Are There People Who Cannot Find a Job?

Nine – Why Is There a Trade-off between Inflation and Unemployment in the Long Run?

Ten – Why Is Saving for the Future So Arbitrary?

Eleven – Why Are Financial Prices and Corporate Investments So Volatile?

Twelve – Why Do Real Estate Markets Go Through Cycles?

Thirteen – Why IS There Special Poverty among Minorities?

Fourteen – Conclusion

Notes

References

Index