tight money

Thân thiện

A family discusses their budget at the kitchen table because of tight money.

Definition

Noun: - A monetary policy or economic condition characterized by restricted credit availability and high interest rates: This situation is typically engineered by a central bank to control inflation by making borrowing more expensive and difficult, thereby reducing the money supply and slowing economic activity.

Usage Examples

• Noun:
  • The central bank's shift to tight money has made it harder for small businesses to get loans.
  • Economists predict that a period of tight money will cool down the overheated housing market.
  • During the recession, tight money policies were implemented to stabilize the currency.

Advanced Usage

• "tight money policy": A deliberate course of action by monetary authorities to restrict the money supply.
  • The Federal Reserve adopted a tight money policy to combat rising inflation.
• "era of tight money": A prolonged period during which such economic conditions persist.
  • Many companies struggled to survive during the era of tight money in the early 1980s.

Variants and Related Words

• Monetary tightening (n): The process of implementing tight money policies.
  • The monetary tightening is expected to continue through the next quarter.
• Tight credit (n): A condition where loans are difficult to obtain; often used synonymously with "tight money," though it can focus more on the lending aspect.
  • The tight credit environment is stifling consumer spending.

Synonyms

• Dear money (n, chiefly British): An older term with the same meaning as "tight money."
• Restrictive monetary policy (n): A more formal term describing the policy that creates tight money conditions.
• Hard money (n): Can sometimes be used in a similar context, though it more often refers to currency backed by a tangible commodity like gold.

Antonyms

• Easy money (n): An economic condition where credit is readily available and interest rates are low.
  • The period of easy money led to a surge in speculative investments.
• Loose monetary policy (n): A policy aimed at increasing the money supply and making credit more accessible.
• Expansionary monetary policy (n): A formal term for policies that increase the money supply to stimulate the economy.

Học thuật

Noun

1. the economic condition in which credit is difficult to secure and interest rates are high