Review Animal Spirits: How Human Psychology Drives the Economy, and why it matters for Global Capitalism, by Akerlof and Shiller

From Hugo Domic

Horrible Book! The authors try to sell a theory of animal spirits, all I read was stories! First part of the book the authors tell little stories from the Depression, the Great Depression, this Recession, the dotcom bubble, some little stories in the middle, stories of money illusion… Just stories! No real theory behind! not even a workable definition or concept of animal spirits!

I didn´t understant who is the target public of the book. Supposedly is a Popular Economics book, the stories part is good for the public but the author use references from academic papers so many times the idea or objective of the paper is not clear (the references to Bernanke are a joke, they send the reader to read one paper on monetary theory which is full of VARs at stuff). In order to grasp the ideas and references of the authors one most know this works before reading the book! So I believe that the populace didn´t understood the book at all, yeah they can read and see fun stories that they can tell their buddys but no real knowlede or understanding comes out of there.

Really terible book.

Then I was expecting having examples in economic theory of incorporating animal spirits and getting different results. No all we get is stories and more stories, they tell us standard Macro is crap and we should use animal spirits. OK everybody knows that, but how do we incorporate animal spirits? With which tools? And which Principles? They authors don´t propose anything of the kind, so the book is futile in that respect.

The worst and really the worst is the misleading title! Human psychology they say…Not even one reference to a respected Psychology (only Kanehman, the only psychology economists know…). All the other references are to mediocre psychologist. Wait! Not even Psychologists, Social Psychologists, and everybody knows what that´s worth… At least they could read the References of Social Psychology, Bandura, Weiner, Skinner… It´s really not that hard any wikipedia page on social psychology gives you the names of the references. So in the “psychology side” of their story is even worst then the rest because they don´t have solid grounds.

I don´t recommend this book to anyone, for the populace will not grasp the ideas of the authors for economic theory, academics and students don´t have a workable concept, definitions or roadmap in the book, so is a afternoon lost in reading the book.

Don´t waste your time with this, if you have to read it at least download it! don´t pay for it!

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One Response to Review Animal Spirits: How Human Psychology Drives the Economy, and why it matters for Global Capitalism, by Akerlof and Shiller

  1. Sherrie says:

    I read this article fully on the topic of the difference
    of latest and previous technologies, it’s amazing article.

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