"Animal Spirits" by George Akerlof Publisher: CITIC Press

Introduction
This is a landmark book, a culmination of the discussion of human nature in the field of economics, an attempt to reframe economic theory for our time, with a fascinating idea or amazing fact on every page.
In this book, economists George Akerlof and Robert Shiller question what led us into the financial crisis and offer new insights that can turn the economy around and restore our financial strength.
Several global financial crises have painfully demonstrated that powerful psychological drivers can greatly reduce a country's wealth. From blind faith in rising housing prices to overconfidence in the capital market, animal spirits not only drive global financial events, but also disrupt China's economy and capital markets. In the capital market, animal spirits demonstrate a simple logic: confidence is important, and lack of confidence is also important; when public sentiment changes from extreme joy to anxiety or even fear, its impact on stock prices and economic activities can be extremely terrifying.
Why is the stock market volatile? Why is the real estate market so unpredictable? Why does the economy fall into depression? Why does the market fail? Why can the central bank control the national economy? In this book, the two authors set aside the assumption that human economic decisions are based on rational economic motivations, put irrational factors at the forefront and core of macroeconomics, and try to construct a theory of animal spirits to explain macroeconomic phenomena and the real operating principles of the economy.
The conclusion of this book is clear: in such an unreliable world full of animal spirits, the role of the government is to set conditions and formulate rules of the game so that animal spirits can play a better and more creative role. Those who say that the economy should be laissez-faire do not fully understand how unreliable this society formed by unreliable people is!