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Finance Dictionary and Glossary of Investment Terms
tight money
Definition 1.
A central bank policy designed to curb inflation by reducing the reserves of commercial banks (and consequently the money supply, through open market operations). also called tight monetary policy. opposite of easy monetary policy.
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Definition 2.
When a restricted money supply makes credit difficult to secure. The antithesis of tight money is easy money.
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Definition 3.
When money or loans in a country are very difficult to obtain and, if you do have the opportunity, then interest rates are usually extremely high. Also known as dear money.
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