Tight monetary policy

Tight Monetary policy could involve.
Raising Interest Rates.
For example, the Bank of England would raise the base rate. This base rate tends to effect all the other interest rates in the economy.

tight money/tight monetary policy

When the monetary authorities of a country adopt a policy that decreases money supply and raises interest rates as a means to slow down economic activity.

The first is the tight monetary policy of the U.S. Federal Reserve, which limits the quantity of money in the market.

tight monetary policy A central bank policy designed to curb inflation by increasing the reserves... tight money A central bank policy designed to curb inflation by increasing the reserves...

He did not find any evidence between oil price variations and employment level in productive sector, supporting the idea that the output reduction has to be attributed to a tight monetary policy (implemented to reduce the oil shock impact) than the ...

If a tight monetary policy is introduced after a long period of inflation, the long-run effect will be for prices and wages to rise more slowly. But in the short run, some prices may continue to rise at the older rate.

But the Federal Reserve insisted on an overly tight monetary policy on the advice of monetarists like Milton Friedman, driving interest rates up to ridiculous levels. The price of gold fell, and the U.S. plunged into deflationary recession.

an accommodative monetary policy during the late stages of the bear market that began in late 2000. When the economy finally showed signs of a rebound, the Fed eased up on the accommodative measures, eventually moving to a tight monetary policy in ...

Tight monetary policy, also called contractionary monetary policy, tends to curb inflation by contracting the money supply. Easy monetary policy, also called expansionary monetary policy, tends to encourage growth by expanding the money supply.

In tandem with fiscal policy, monetary policy is one of the chief arms of Government economic policy. Tight monetary policy usually means higher interest rates as the scarcity of money prevails, whereas loose monetary policy is the reverse.

See also: Banks, Saving, Fiscal policy, Expense, Deflation