TIGHT MONEY: A term used when the Federal Reserve System pursues contractionary monetary policy. In other words, to contract our economy out of an inflationary expansion, the Fed decreases the amount of money in the economy or makes it "tighter" for people to get money (usually through bank loans). See also | money | monetary policy | Federal Reserve System | open market operations | government securities | bank | bank reserves | discount rate | reserve requirements | easy money | contractionary monetary policy |
