Notes on Birds

Projektraum Dosenfabrik Hamburg, 2024 (mit Annika Unterburg)

Hawks and doves

The titular birds are a metaphor for opposing positions in economic policy. On display are photographs of birds and overpaintings of enlarged book pages from “Governing by Debt”, a book on debt policy by Maurizio Lazzarato.

The symbolic connotations of birds are ancient: falcons are associated with hunting and warfare, doves symbolize domesticity and peace. Hawks and doves are terms that stand for different attitudes towards monetary policy and economic development. Hawks favor tighter monetary policy to curb inflation, while doves favor looser monetary policy to spur economic growth.
Doves and hawks symbolize political and monetary policy decision-makers and advisors within a central bank committee. They are classified according to their expected voting behavior:
A strict monetary policy with higher interest rates to counteract inflation are characteristics of a hawk. High interest rates usually have a negative impact on shares and indices.Investors sell assets in exchange for assets in other currencies, with lower risk and yet comparably high returns. Under certain circumstances, this can lead to an appreciation of the currency concerned.
A loose or moderate monetary policy, which aims to stimulate the economy by lowering interest rates, represents the dovish view. Spending that benefits the economy is increased, the employment rate and thus consumption should rise. The risk of rising inflation is accepted. Due to lower interest rates, investors are encouraged to shift their capital into higher-risk investments. The prices of shares and indices can benefit from this, but this development can have a negative impact on the currency of the affected economy.