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.)

---

Discover More

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

Bankers and brokers applauded him for sticking with his tight-money policy until the recession had tamed inflation, slashing the annual rate of price increases from 13% at the beginning of his term to less than 4% now.

From Time Magazine Archive

Two weeks ago, the Open Market Committee, the Federal Reserve's policy-making group, voted, in effect, to confirm that it was temporarily loosening up on tight-money policy so that the economy could begin growing more rapidly.

From Time Magazine Archive

These consisted of supply-side tax cuts, reductions in federal spending, moves toward deregulation, and a monetarist tight-money policy to curb inflation.

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