Tight money

Tight money,

Definition of Tight money:

  1. Money that can be borrowed only at high interest rates, usually because of tight monetary policy or some other cause of low liquidity in the financial system. Also called dear money, it is the opposite of easy money.

  2. Money or financing that is available only at high rates of interest.

  3. Tight money is usually the result of tight monetary policy that restricts money supply, and reduces the amount of money banks have to lend. It can also be the result of an increased demand to hold money, when the quantity of money remains unchanged.

  4. Tight money, also known as dear money, results from a shortage of money when monetary policy decreases money supply and the amount of money banks have to lend, in order to slow down economic activity.

How to use Tight money in a sentence?

  1. Second, most Russians believe that tight money (low inflation, high interest rates) has not worked during the last four years.

Meaning of Tight money & Tight money Definition