tight-money policy

Cultural  

1. 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.)

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A tight-money policy might be pursued to limit inflation.

Example Sentences

The tight-money policy threatens to tip the economy, which is already stagnant, into recession.

From New York Times • Jul. 19, 2023

That gave the banks more money to lend in America, and eased the sting of the Federal Reserve's tight-money policy.

From Time Magazine Archive

For months, the board has been following a tight-money policy of unusual severity.

From Time Magazine Archive

The need for it was underlined by the soft spots in the nation's business, and the blame for them fell on the Federal Reserve Board's tight-money policy.

From Time Magazine Archive

For the first time, the President expressed some uneasiness that the Federal Reserve Board's tight-money policy might tip the economy into recession.

From Time Magazine Archive