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Dear Money

What is 'Dear Money'

A situation in which money or loans are very difficult to obtain in a given country. If you do have the opportunity to secure a loan, then interest rates are usually extremely high. Also known as "tight money".

Explaining 'Dear Money'

This situation can be a result of a restricted money supply, causing interest rates to be pushed up due to the forces of supply and demand. Businesses may have a tough time raising capital during a period of dear money.



Further Reading


" A Dear Money Man"?: Keynes on Monetary Policy, 1920
www.jstor.org [PDF]
… London, 1968), Chapter I. 4 A. Leijonhufvud, On Keynesian Economics and the Economics of Keynes … InJuly 1920 he was still a " dear money man " (his own description of himself in notes … 1942 comment, but he made known his views on post-war economic management with …

Financial Sector Reforms: An Exercise in IntrospectionFinancial Sector Reforms: An Exercise in Introspection
www.jstor.org [PDF]
… London, 1968), Chapter I. 4 A. Leijonhufvud, On Keynesian Economics and the Economics of Keynes … InJuly 1920 he was still a " dear money man " (his own description of himself in notes … 1942 comment, but he made known his views on post-war economic management with …

Dear Money Policy, Rising Yields and High Interest CostsDear Money Policy, Rising Yields and High Interest Costs
www.jstor.org [PDF]
… London, 1968), Chapter I. 4 A. Leijonhufvud, On Keynesian Economics and the Economics of Keynes … InJuly 1920 he was still a " dear money man " (his own description of himself in notes … 1942 comment, but he made known his views on post-war economic management with …



Q&A About Dear Money


What is dear money?

Dear money is a situation in which money or loans are very difficult to obtain.

How do businesses react during dear money?

Businesses may have a tough time raising capital during periods of dear money.

What happens during dear money?

Interest rates tend to be pushed up due to the forces of supply and demand.

Why does dear money occur?

Dear money occurs when there is a restricted supply of capital.

What can cause dear money?

A restricted supply of capital can cause dear money.

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