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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

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

From New York Times Jul. 19, 2023

To avert collapse, the builders and lenders almost unanimously called on the Federal Reserve Board to relax its tight-money policy, and many advocated a balanced federal budget to give the board more room to maneuver.

From Time Magazine Archive

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

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

Many economists think that primary credit should go to the tight-money policy of Federal Reserve Chairman Paul Volcker.

From Time Magazine Archive

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