Inflation Hawk
An Inflation Hawk is an economic policy adviser who believes that inflation will have a negative impact on the economy and that inflation is a bad thing. Inflation Hawks argue for monetary policies that maintain higher interest rates to curb inflation.
Last updated: 15-Jun-2023
What is Inflation Hawk?
The term comes from the analogy of a hawk, which is a bird of prey that is known for its aggressive hunting behavior. Just as a hawk will attack its prey, an inflation hawk will take aggressive action to prevent inflation from getting out of control.
Inflation hawks believe that inflation can have a number of negative consequences, including:
- It can erode the value of savings and investments.
- It can make it more difficult for businesses to plan for the future.
- It can lead to higher interest rates, which can make it more difficult for people to borrow money.
- It can lead to social unrest, as people become frustrated with the rising cost of living.
The opposite of a "hawkish" attitude to inflation is a "dovish" stance. Hawks reason that higher interest rates will control inflation and provide stability in an economy and provide an even growth rate with fewer boom and bust cycles.