adjective
- relating to or causing a reduction in the money supply or economic activity; designed to decrease inflation or slow economic growth
Usage: economics; finance
Examples
- The central bank adopted contractionary monetary policy to combat rising inflation.
- Contractionary fiscal measures included tax increases and spending cuts.
- Higher interest rates are a contractionary tool used to cool an overheated economy.
- The government's contractionary budget reduced the deficit but slowed job growth.
- Contractionary policies can help prevent asset bubbles from forming.
- During the recession, contractionary measures made borrowing more expensive for businesses.