tight monetary policy

Definition

A central bank policy designed to curb inflation by increasing the reserves of commercial banks (and consequently reducing the money supply, through open market operations). also called tight money. opposite of easy monetary policy.

Reproduction of all or part of this glossary and/or this page, in any format, without written consent is prohibited. If you have questions about this dictionary please feel free to contact us feedback\@\investorguide.com

Related Terms

monetary policy - More

squeeze -

accommodative monetary policy - More

loose credit

Related Terms on BusinessDictionary

excess reserves

Popular 'Economy' Terms

GDP
recession
inflation
command economy
bear market

demand
fiscal policy
monetary policy
deflation
cyclical

tight monetary policy in the news

Enter your email address to get our free Term of the Day newsletter!

Tools

tight monetary policy is ...

... part of the Economy subject.

Nearby Terms

ticket
tick-test rules
tier
tiger
tight market
tight monetary policy
tight money
tighten
tilted portfolio
time decay
time deposit