Keynesian Spiritus Animales Approach and the Transformation of the Capitalist System

Abstract

Abstract. Economic crises have radical consequences. They are major challenges for national and international social policy. The crises are also the cause of reform and of re-definition of theories. The Keynesian approach also emerged from an economic crisis and it has reformed the capitalist system. However, the Keynesian theory itself now needs to be reformed. This paper aims to bring light into the Keynesian theory and the transformation process of capital system. Finally, as lessons for the future two conclusions arise: Firstly, policy makers shall continue to have the assumption that economic crises do not have a simple and permanent solution, which is valid at any time. Secondly, it needs not only traditional economic policies, but especially institutional reforms and new innovative perspectives. In this respect, the Keynesian definition “animal spirit of capitalism” can be useful in predicting the next policy of the liberal economy in the age of globalism.

Keywords. Keynes, Capitalism, EU, Economic Transformation, Globalization.

JEL. A14, B20, B52, F01.