Definition of 'Hawk'
In the financial world, a hawk is a person who is in favor of a tight monetary policy. This means that they believe that the central bank should raise interest rates in order to slow down economic growth and inflation. Hawks believe that this is necessary in order to prevent the economy from overheating and to avoid a financial crisis.
On the other hand, a dove is a person who is in favor of a loose monetary policy. This means that they believe that the central bank should keep interest rates low in order to stimulate economic growth. Doves believe that this is necessary in order to prevent the economy from going into recession.
The debate between hawks and doves is a long-standing one in the world of finance. There are strong arguments to be made on both sides of the issue. However, the current economic climate is likely to favor the hawks, as inflation is on the rise and the Federal Reserve is likely to raise interest rates in order to combat it.
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