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.

Noun

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