Скачать или смотреть HawkISH vs DOVISH POLICY ECONOMICS

Hawkish and Dovish policies represent opposing stances in central bank monetary management. Hawkish (or hawk) policy focuses on curbing inflation through higher interest rates and tighter money supply. Dovish (or dove) policy prioritizes economic growth and lower unemployment, often employing lower interest rates and looser monetary policy.
Key Differences Between Hawkish and Dovish Stances:
Goal: Hawks target price stability and low inflation. Doves target maximum employment and economic growth.
Interest Rates: Hawks raise interest rates to slow down an overheating economy. Doves lower interest rates to encourage borrowing, spending, and investment.
Economic View: Hawks believe high inflation is a greater threat. Doves see high unemployment or recession as a greater risk, sometimes allowing higher inflation to stimulate the economy.
Market Impact: Hawkish actions generally strengthen the currency but can dampen stock markets due to higher borrowing costs. Dovish actions often weaken the currency but encourage investment and boost asset prices.
Policy Tools: Hawks reduce the money supply (quantitative tightening). Doves expand liquidity (quantitative easing).
Examples:
Hawkish: In 2022–2023, the Federal Reserve raised rates 11 times to combat rampant inflation.
Dovish: During the COVID-19 pandemic, the Fed acted as a dove by slashing interest rates to zero and implementing massive asset purchases to prevent an economic collapse.