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tightening of monetary policy

Discussion in 'English Only' started by catherine1999, Jun 10, 2008.

  1. catherine1999 Senior Member

    chinese
    its biggest drop since June last year, after the central bank announced a harsher-than-expected tightening of monetary policy to fight inflation

    Hi,furom.what is "tight monetary policy"?I know tight something means keep it from loose,if tight something that isn't physical,does it mean "control hardly"?
     
  2. snowyyy

    snowyyy Senior Member

    English & Hindi
    Yes, here "tightening" means that the monetary policy was "more controlled" that is it was made "less liberal than before".
     
  3. bibliolept

    bibliolept Senior Member

    Northern California
    AE, Español
    To fight inflation, a country's central banking authority, or whatever body fills this role, may rein in the supply of money or slow its growth, may alter interest rates, or may change other conditions under which money can be borrowed.

    A "tight" policy is one that is meant to slow down lending or the economy, often through raised interest rates or increasing the requirements for lending or borrowing money.
     
  4. catherine1999 Senior Member

    chinese
    Thanks a lot.I get it
     

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