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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

Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

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

From New York Times • Jul. 19, 2023

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

One was a reaction to Chairman Arthur Burns' tight-money policy in 1974; Reuss called for increasing the money supply at an annual rate of 6% with the aim of bringing down interest rates.

From Time Magazine Archive

Economist Walter Heller, CEA chairman under President Kennedy, asserts that if the present tight-money policy is continued, the jobless rate will scoot up toward 7% by mid-1975.

From Time Magazine Archive

But then came rumors last week that the Federal Reserve Board had voted to ease up on its tight-money policy.

From Time Magazine Archive

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