Researcher models business cycle using ‘animal spirits’

The Federal Reserve Bank of San Francisco
Shell Jiang

A working paper from the Federal Reserve Bank of San Francisco tries to incorporate human sentiment into the modelling of real business cycles.

In Real business cycles, animal spirits and stock market valuation, Kevin Lansing uses the Keynesian notion of “animal spirits” to better explain fluctuations in consumer sentiment. This means including a measure of an agent’s subjective expectations. The author includes an “equity sentiment shock” alongside five more typical shock types in a real

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: