tight money

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 monetary policy. opposite of easy monetary policy.

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Our tight money policy was in place to help and not to hurt, which made people support it a lot.

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During the times of a tight money policy, everyone seemed to be on edge and careful of mistakes with the money supply we had available.

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Because of the Fed's tight money policy, they reigned in the excess economical cash flow, making loans through the banks harder to acquire with less circulation.

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