Inflation Dove
An Inflation Dove is an economic policy adviser who believes that inflation will have a minimal impact on the economy and that inflation is not a bad thing. Inflation Doves argue for monetary policies that maintain low interest rates.
Last updated: 15-Jun-2023
What is Inflation Dove?
The term comes from the analogy of a dove, which is a bird that is known for its peaceful nature. Just as a dove will not attack unless provoked, an inflation dove will not take aggressive action to prevent inflation unless it becomes a serious problem.
Inflation doves believe that inflation can have some positive consequences, including:
- It can help to stimulate the economy by encouraging businesses to invest and hire more workers.
- It can make it easier for people to repay their debts, as the value of their debt decreases over time.
- It can lead to higher wages, which can help to improve the standard of living for workers.
The opposite of a "dovish" attitude to inflation is a "hawkish" stance. Doves reason that low interest rates will encourage growth in an economy because access to capital will be more affordable and available.