Tightening

Monetary policy - money supply.

Measures designed to reduce the money supply.

Usually with the intention of reducing excessive inflation.

Ample tools to tighten

"At present, if we overdo the stimulus somewhat and then find the economy recovers strongly, we have ample tools and time to tighten policy again before persistent excess demand and inflation become a problem."

Michael Saunders, External Member of the Bank of England's Monetary Policy Committee (MPC), May 2020.

See also

• Asymmetric
• Balance sheet reduction policy
• Bank of England
• Central bank
• COVID-19
• Downside risk
• Easing
• Inflation
• Inflation target
• Lowflation
• Monetary Policy Committee
• Quantitative easing
• Quantitative tightening
• Risk management
• Stagflation