Tight

Monetary policy.

In relation to monetary policy, tight monetary policies or conditions are ones designed - or expected - to produce downward pressure on economic demand and inflation.

Growth in euro area will rebound but from very low levels

"Pierre-Olivier Gourinchas, the IMF’s economic counsellor, is cautious about cutting interest rates...

Gourinchas adds that the resilient global economy also masks stark divergence across countries. 'The strong recent performance of the United States reflects robust productivity and employment growth, but also strong demand in an economy that remains overheated,' he says.

'This calls for a cautious and gradual approach to easing by the Federal Reserve.'

Gourinchas predicts that growth in the euro area will rebound but from very low levels, as past shocks and tight monetary policy weigh on activity."

Fight against inflation not yet won, as growth steadies, IMF warns - The Treasurer - Issue 2, 2024, p23.

See also

• Bank of England
• Demand
• Depression
• Easing
• Euro area
• Federal Reserve
• Financial Policy Committee
• Fiscal policy
• Inflation
• Inflation target
• Interest rate
• International Monetary Fund (IMF)
• Monetary policy
• Monetary Policy Committee
• Money supply
• Overheating
• Quantitative easing (QE)
• Quantitative tightening (QT)
• Recession
• Tightening
• Unconventional monetary policy

Other resource

• UK monetary policy - Bank of England