Definition, Meaning & Synonyms
contractionary
Adjective
/kənˈtrækʃəˌnɛri/
Definition
Related to an economic policy that aims to reduce spending and curb inflation by decreasing the money supply or increasing interest rates.
Examples
- The central bank implemented contractionary measures to stabilize the economy.
- Contractionary fiscal policy often results in lower public spending and higher taxes.
- During periods of high inflation, governments may adopt contractionary strategies to control price levels.
Meaning
Describing policies or measures that lead to a contraction in economic activity.
Synonyms
- Restrictive
- Reductionary
- Deflationary
