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tight-money policy

tight-money policy in Culture

tight-money policy definition

A policy in which a central monetary authority, for example, the Federal Reserve System, seeks to restrict credit and raise interest rates. (Compare easy-money policy.)

Note: A tight-money policy might be pursued to limit inflation.
The New Dictionary of Cultural Literacy, Third Edition
Copyright © 2005 by Houghton Mifflin Company.
Published by Houghton Mifflin Company. All rights reserved.
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