1 [loo-nee] Informal.
adjective, loonier, looniest.
lunatic; insane.
extremely or senselessly foolish.
noun, plural loonies.
Also, looney, luny.

1860–65; lun(atic) + -y2

looniness, noun
Dictionary.com Unabridged


2 [loo-nee]
noun, plural loonies.
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Based on the Random House Dictionary, © Random House, Inc. 2014.
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World English Dictionary
loony, looney or luny (ˈluːnɪ)
adj , loonier, looniest, lunier, luniest
1.  lunatic; insane
2.  foolish or ridiculous
n , loonier, looniest, lunier, luniest, loonies, looneys, lunies
3.  a foolish or insane person
looney, looney or luny
luny, looney or luny
'looniness, looney or luny
'luniness, looney or luny

Collins English Dictionary - Complete & Unabridged 10th Edition
2009 © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins
Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009
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Word Origin & History

1853, Amer.Eng., short for 'lunatic, but also infl. by loon (2), which is noted for its wild cry and method of escaping from danger. Slang loony bin "insane asylum" is from 1919. Looney left in ref. to holders of political views felt to be extreme is from 1977.
Online Etymology Dictionary, © 2010 Douglas Harper
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Slang Dictionary

loony definition

and looney; loonie
  1. n.
    a crazy person. (From lunatic.) : I'm beginning to feel like a loonie the longer I stay around here.
  2. mod.
    crazy. : That is a loony idea. Forget it.
  3. mod.
    alcohol intoxicated. : She's acting a little loonie. Let's get her home before she's sick.
Dictionary of American Slang and Colloquial Expressions by Richard A. Spears.Fourth Edition.
Copyright 2007. Published by McGraw-Hill Education.
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Example sentences
It turns out that he wasn't killed after all but was captured and sent to the
  loony bin.
In the end, the editor drives a wagon from the local loony bin into the
  ceremony and kidnaps her.
Mel's search for his birth parents is nominally what sets this enchantingly
  loony comedy in motion.
It delightfully takes its loony scenario for granted.
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