Topic: The Purpose of a Tight Money Policy Is to
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What is tight-money policy?
A policy in which a central monetary authority, for example, the Federal Reserve System, seeks to restrict credit and raise interest rates. (Compare easy-money policy.) A tight-money policy might be pursued to limit inflation. Read More »
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What problem does tight money policy combat?
tight money policy combats inflation (when to much money is out in circulation the Fed limits the amount of money that is in Circulation known as the tight money policy.) Read More »
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What are the easy and tight money policies
"Easy", they try to expand the money in the economy, "tight", they are trying to shrink the amount of money in the economy. Read More »
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Answers to Other Common Questions
Tight money-High interest rates and lack of availability of credit, resulting from the Federal Reserve's monetary policy decisions
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Easy Money Policy This monetary policy is used when the economy is faced with recession and unemployment. More Information?
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In a loose money policy, there is more than likely no budget. In a tight money policy, there are strict budgets and guidelines.
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It creates chaos. You can't have an expansionary monetary policy, and a tight money policy, since they are exact opposites.
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ok, easy monetary policy, fed printing money and government spending money. tight monetary policy is fed collecting excessive amounts of money by rising interest rates and government cuts spendings. bye,
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aggregate demand curve rightward
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A loose policy would be that money is easy and relatively cheap to borrow. This allows fast growth but can stimulate inflation. The value of your currency can also be reduced in comparison to others so your goods are cheaper to them and the...
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Source: http://answers.yahoo.com/question/index?qid=20070328151113AAe5Rua
