During the Vietnam War, American politicians who supported continuing the war were called “Hawks”, likening their aggressive stance to the nature of a hawk. On the other hand, those who advocated for ending the war and resolving conflicts peacefully through diplomacy were referred to as “Doves”, symbolizing peace.
In economic policy, those who advocate for tight monetary policies and interest rate hikes to ensure price stability are called Hawks. Conversely, those who support quantitative easing and interest rate cuts to promote economic growth are referred to as Doves.
Hawkish Stance
- Focus on price stability (curbing inflation)
- Interest rate hikes and tight monetary policy to increase the value of money
- Reduction in money supply in the market
- Economic slowdown but stable prices
Dovish Stance
- Focus on economic growth (preventing deflation)
- Interest rate cuts and quantitative easing to lower the value of money
- Increase in money supply in the market
- Economic expansion but potential inflation risks
