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.

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.