Dove

AAA

DEFINITION of 'Dove'

An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that inflation and its negative effects will have a minimal impact on society. This term is derived from the docile and placid nature of the bird of the same name, and is the opposite of the term "hawk".

Statements that suggest that inflation will have a minimal impact are called "dovish".

INVESTOPEDIA EXPLAINS 'Dove'

Doves prefer low interest rates as a means of encouraging growth within the economy because this tends to increase demand for consumer borrowing and spur consumer spending. As a result, doves believe the negative effects of low interest rates are negligible in the larger scheme of things. However, if interest rates are kept low for an indefinite period of time, inflation could rise considerably.

RELATED TERMS
  1. Economics

    A social science that studies how individuals, governments, firms ...
  2. Hawk

    A policymaker or advisor who is predominantly concerned with ...
  3. Inflation

    The rate at which the general level of prices for goods and services ...
  4. Federal Reserve Board - FRB

    The governing body of the Federal Reserve System. The seven members ...
  5. Interest Rate

    The amount charged, expressed as a percentage of principal, by ...
  6. Gorilla

    A company that dominates an industry without having a complete ...
Related Articles
  1. Economics

    The Federal Reserve

  2. Forex Education

    Get To Know The Major Central Banks

  3. Economics

    When The Federal Reserve Intervenes ...

  4. Economics

    Economic Meltdowns: Let Them Burn Or ...

Hot Definitions
  1. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  4. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  5. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  6. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
Trading Center