tight monetary policy


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.

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The bank had to go under the tight monetary policy, so I was unable to borrow the amount of money that I needed for my business.

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A Tight Monetary Policy would be used by any bank and/or lender to stop inflation once it has passed a certain benchmark set by a central bank

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Anytime there is is more money available to an economy, the risk of high inflation of interest rates is lower. Usually a banking institution will put a TIGHT MONETARY POLICY in place to make sure of this.

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