Greater Fool glossary / Economy & Macro

hawkish

A description of an economic policy or official that favors tighter monetary policy, higher interest rates, and stricter control over the money supply, usually to fight inflation. A hawkish stance prioritizes controlling inflation over encouraging economic growth or employment. The term comes from the idea of hawks as aggressive birds, contrasting with 'dovish' policies that are more accommodating.

In practice

A central bank official says that fighting inflation is the top priority and that interest rates should stay high for a long time, even if it slows job growth. This hawkish stance emphasizes controlling prices over supporting employment.

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