Tight Money

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Definition: Tight Money

Tight Money

Quick Summary of Tight Money

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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Full Definition of Tight Money

A tight money policy is when the Federal Reserve sells securities, increases the discount rate, and/or increases the reserve ratio in order to decrease commercial banks’ excess reserves and decrease the money supply.

Synonyms For Tight Money

tight monetary policy

Related Phrases

Easy money policy
Monetary policy
Money supply
Ben Bernanke

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Tight Money. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
April 20, 2024 https://payrollheaven.com/define/tight-money/.
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Tight Money. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/tight-money/ (accessed: April 20, 2024).
American Psychological Association (APA):
Tight Money. PayrollHeaven.com. Retrieved April 20, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/tight-money/

Definition Sources

Definitions for Tight Money are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 28th November, 2021 | 0 Views.