Tight Money (Noun)
Meaning
The economic condition in which credit is difficult to secure and interest rates are high.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The small business struggled to stay afloat during a period of tight money, when banks were hesitant to lend and interest rates were skyrocketing.
- As a result of the economic downturn, many consumers found themselves in a tight money situation, forced to cut back on discretionary spending.
- The company's expansion plans were put on hold due to tight money, which made it impossible to secure the necessary funding at reasonable interest rates.
- During times of tight money, investors often become more cautious and selective in their investment choices, seeking safer and more stable returns.
- The central bank's decision to raise interest rates further exacerbated the tight money conditions, leading to a significant slowdown in economic growth.