tighten
TY-tuhn
/ˈtaɪ.tən/
To restrict access to credit or reduce the money supply, usually by raising interest rates.
In monetary policy, tightening specifically means making borrowing costlier to cool down overheating growth.
The story behind the word. Originates from Old English tyhtan meaning to draw tightly. Central banks 'pull back' liquidity like pulling reins on a horse.
Word relationships
- restrict: Restrict is general; tighten in economics specifically means raising interest rates or lowering money supply.
- ease: Ease means lowering interest rates to stimulate spending.
Commonly confused with
- accommodate: Tightening contracts money supply, while an accommodative policy expands it.
Word family
- tight (adjective): Strict, constrained, or limited.
- tightness (noun): The state of being constrained.
Collocations
- tighten policy
- tighten credit
- tighten rates
- monetary tightening
Idioms & expressions
- tighten one's belt
Example sentences
- "The central bank decided to tighten monetary policy by raising interest rates by fifty basis points." Monetary decision
- "If consumer demand heats up too fast, central authorities may tighten lending requirements for commercial banks." Economic policy
Memory hook
TIGHTEN the purse strings: make borrowing harder to pull back money. Pulling back the reins on borrowing.
When not to use
Avoid confusing literal physical tightening (screws, belts) with monetary policy tightening.
Fun facts
- Paul Volcker tightened US interest rates to nearly 20 percent in 1980 to defeat high inflation.
Related words
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