May 3, 2025 · Contractionary policy is a macroeconomic tool used by a country's central bank or finance ministry to slow down an economy.

The meaning of CONTRACTION is the action or process of contracting : the state of being contracted. How to use contraction in a sentence.

Dec 5, 2025 · Contractionary fiscal policy is the government’s strategy to cool down an economy growing too quickly or experiencing high inflation. It involves decreasing net government spending …

Definition of 'contractionary' contractionary in British English (kənˈtrækʃənərɪ ) adjective involving or constituting economic contraction

Contractionary monetary policy is an economic policy used to deal with inflation. It involves reducing the money supply to ensure the cost of borrowing is high enough to restrict people from applying for a loan.

A contractionary monetary policy is a type of monetary policy that is intended to reduce the rate of monetary expansion to fight inflation. A rise in inflation is considered the primary indicator of an …

The Federal Reserve may use expansionary monetary policy to provide stimulus for the economy. It may use contractionary monetary policy to bring inflation back toward its target.

May 11, 2025 · Contractionary policy is a macroeconomic strategy commonly employed by central banks and governments to temper an overheating economy and combat inflation. When inflation …

Contractionary policies are often implemented when the economy is growing too quickly and inflation is rising above desired levels. By reducing government spending or increasing taxes, contractionary …

May 11, 2025 · Expansionary monetary policy is simply a policy which expands (increases) the supply of money, whereas contractionary monetary policy contracts (decreases) the supply of a country's …