What does hawkish and dovish mean?
Here’s a cheat sheet that summarizes the difference between hawkish and dovish monetary policies:
Hawkish | Dovish | |
Objective | Decrease inflation | Stimulate economy |
Monetary Policy Stance | Contractionary / Tighten | Expansionary / Loosen |
Current Economic Growth | Strong | Weak |
Current Inflation | Inflation increasing | Inflation decreasing or negative |
Interest Rate | Increase (“Hike”) | Decrease (“Cut”) |
Balance Sheet | Reduce | Expand |
Currency Effect | Currency appreciates | Currency depreciates |
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