Monetary hawk and dove

Public finance

Policies Agricultural Economic Energy Industrial Investement Social Trade Fiscal Monetary Policy mix
Fiscal policy Budget policy Debt external internal Deficit / Surplus Finance ministry Fiscal union Revenue Spending deficit Tax
Monetary policy Bank reserves (requirements) Discount window Gold reserves Interest rate Monetary authority central bank currency board Monetary base Monetary (currency) union Money supply
Trade policy Balance of trade Free trade Gains from trade Non-tariff barrier Protectionism Tariff Trade bloc Trade creation Trade diversion Trade / Commerce ministry
Revenue Spending Non-tax revenue Tax revenue Discretionary spending Mandatory spending
Optimum Balanced budget (fiscal) Growth (trade and investment) Price stability (monetary)
Reform Fiscal adjustment Monetary reform

A monetary hawk, or hawk for short, is a term used to describe someone who places keeping inflation low as the top priority in monetary policy. The term contrasts with a monetary dove, which describes someone who emphasizes other issues, especially low unemployment, over low inflation.

The two terms are commonly used in the United States to describe members and nominees to the Federal Reserve Board of Governors, who have major influence on United States monetary policy both as Federal Reserve Governors and as members of the Federal Open Market Committee.^[1]^[2] The terms are also used outside of the United States, in places such as the United Kingdom^[3] and India.^[4] The term "pigeon" has been used to describe individuals who take positions between those of hawks and doves,^[1] although the term "centrist" is also used.

Doves generally are more in favor of expansionary monetary policy, including low interest rates, while hawks tend to favor "tight" monetary policy. For example, doves in the United States tend to favor quantitative easing, seeing it as a way to stimulate the economy,^[5] while hawks tend to oppose quantitative easing, seeing it as a distortion of asset markets.^[1] Additionally, hawks tend to project higher future inflation, and hence see more risk from inflation and a greater need for tight monetary policies, while doves tend to predict lower future inflation, and hence see more need for expansionary monetary policies.^[6]

An individual can be a hawk in some cases and a dove in others.^[6] For example, Janet Yellen was described as a hawk during the economic boom of the 1990s, but was usually described as a dove when she was nominated to Chair the Federal Reserve.^[7] Additionally, the label of "hawk" and "dove" may be applied differently depending on the point of view.^[8]

The hawk–dove dichotomy has been criticized as overly simplistic, especially in times of low inflation or deflation. For example, Federal Reserve Bank of St. Louis President James Bullard has been described as a "deflation hawk" for favoring policies that would raise inflation to a target of 2 percent per year. Washington Post columnist Neil Irwin used the term "bubble hawk" to describe those who focus on using monetary policy to fight financial bubbles.^[9]

References

↑ 1.0 1.1 1.2 Gura, David (13 November 2013). "The economic shorthand of hawks and doves". Marketplace.org. Retrieved 13 March 2014.
↑ Kawa, Lucas (10 January 2013). "HAWKS & DOVES: Meet The 12 People Who Will Control America's Monetary Policy In 2013". Business Insider. Retrieved 13 March 2014.
↑ "Bank of England MPC: Who sets UK interest rates?". BBC. 23 November 2011. Retrieved 13 March 2014.
↑ ET Bureau (29 January 2014). "RBI a vigilant owl, neither a dove, nor a hawk: Raghuram Rajan on monetary policy". The Economic Times. Retrieved 13 March 2014.
↑ GI (9 October 2013). "A new hand on the tiller". Economist. Retrieved 12 March 2014.
↑ 6.0 6.1 Duy, Tim (17 April 2012). "On Labels, Dove vs. Hawk". EconoMonitor. Retrieved 13 March 2014.
↑ O'Brien, Matthew (17 September 2013). "Fed Favorite Janet Yellen Is No Dove—and That's a Good Thing". The Atlantic. Retrieved 13 March 2014.
↑ RA (14 October 2013). "Of doves and dovishness". The Economist. Retrieved 13 March 2014.
↑ Irwin, Neil (30 July 2013). "Why we shouldn’t think of central bankers as hawks and doves". Washington Post. Retrieved 13 March 2014.

Africa	Bank of Central African States Central Bank of West African States Bank of Algeria Central Bank of Angola Bank of Botswana Bank of the Republic of Burundi Bank of Cape Verde Central Bank of the Comoros Central Bank of the Congo Central Bank of Djibouti Central Bank of Egypt Bank of Eritrea National Bank of Ethiopia Central Bank of The Gambia Bank of Ghana Central Bank of the Republic of Guinea Central Bank of Kenya Central Bank of Lesotho Central Bank of Liberia Central Bank of Libya Bank Al-Maghrib Reserve Bank of Malawi Bank of Mauritius Bank of Mozambique Bank of Namibia Central Bank of Nigeria Bank of Somaliland South African Reserve Bank Bank of South Sudan Bank of Sudan Central Bank of Swaziland Bank of Tanzania Central Bank of Tunisia Bank of Uganda Bank of Zambia Reserve Bank of Zimbabwe

Americas	Central Bank of Argentina Central Bank of Aruba Central Bank of The Bahamas Central Bank of Barbados Bermuda Monetary Authority Central Bank of Brazil Bank of Canada Central Bank of Chile Bank of the Republic (Colombia) Central Bank of Cuba Central Bank of Curaçao and Sint Maarten Eastern Caribbean Central Bank Cayman Islands Monetary Authority Central Bank of Ecuador Bank of the Republic of Haiti Central Bank of Honduras Bank of Jamaica Bank of Mexico Central Bank of Nicaragua Central Reserve Bank of Peru Central Bank of Suriname Central Bank of Trinidad and Tobago Federal Reserve System (United States) Central Bank of Uruguay Central Bank of Venezuela

Asia	Da Afghanistan Bank Central Bank of Bahrain Bangladesh Bank Royal Monetary Authority of Bhutan Brunei Currency and Monetary Board Autoriti Monetari Brunei Darussalam National Bank of Cambodia People's Bank of China Hong Kong Monetary Authority Reserve Bank of India Bank Indonesia Central Bank of the Islamic Republic of Iran Central Bank of Iraq Bank of Israel Bank of Japan Central Bank of Jordan National Bank of Kazakhstan National Bank of the Kyrgyz Republic Bank of Korea Central Bank of the Democratic People's Republic of Korea Central Bank of Kuwait Banque du Liban Monetary Authority of Macao Bank Negara Malaysia Maldives Monetary Authority Bank of Mongolia Central Bank of Myanmar Nepal Rastra Bank Central Bank of Oman State Bank of Pakistan Palestine Monetary Authority Bangko Sentral ng Pilipinas Qatar Central Bank Saudi Arabian Monetary Agency Monetary Authority of Singapore Central Bank of Sri Lanka Central Bank of Syria Central Bank of the Republic of China (Taiwan) Bank of Thailand Central Bank of Turkmenistan Central Bank of the United Arab Emirates Central Bank of Uzbekistan State Bank of Vietnam Central Bank of Yemen

Europe	European Central Bank (Eurosystem) National Bank of the Republic of Abkhazia Bank of Albania Central Bank of Armenia National Bank of Austria Central Bank of Azerbaijan National Bank of the Republic of Belarus National Bank of Belgium Central Bank of Bosnia and Herzegovina Bulgarian National Bank Croatian National Bank Central Bank of Cyprus Czech National Bank Danmarks Nationalbank Deutsche Bundesbank Bank of England Bank of Estonia Bank of Finland Banque de France National Bank of Georgia Bank of Greece Hungarian National Bank Central Bank of Iceland Central Bank of Ireland Banca d'Italia Central Bank of Kosovo National Bank of Latvia Bank of Lithuania Central Bank of Luxembourg National Bank of the Republic of Macedonia Central Bank of Malta National Bank of Moldova Central Bank of Montenegro De Nederlandsche Bank Norges Bank Central Bank of the Turkish Republic of Northern Cyprus National Bank of Poland Banco de Portugal National Bank of Romania Central Bank of Russia Banka Slovenije (Slovenia) National Bank of Serbia Bank of Spain Národná banka Slovenska (Slovakia) Sveriges Riksbank Swiss National Bank Central Bank of the Republic of Turkey National Bank of Ukraine

Oceania	Reserve Bank of Australia Reserve Bank of Fiji Reserve Bank of New Zealand Bank of Papua New Guinea Central Bank of Samoa Central Bank of Solomon Islands National Reserve Bank of Tonga

Policies and implementation

Policies	Capital requirement Contractionary monetary policy Expansionary monetary policy Basel II Basel III Basel 4

Implementation	Capital control Discount rate Interest rates Money creation Open market operation Sovereign wealth fund

Bretton Woods system

International Monetary Fund World Bank Group International Bank for Reconstruction and Development International Centre for Settlement of Investment Disputes International Development Association International Finance Corporation Multilateral Investment Guarantee Agency

Lists

List of central banks Central banks and currencies of Africa Central banks and currencies of the Caribbean Central banks and currencies of Central America and South America

Names in italics indicate non-sovereign (dependent) territories, former countries, or states with limited recognition

Monetary hawk and dove

References

See also