Abstract
The obverse of cheap money, ‘dear money’ is also used to denote episodes in which central banks have raised (short-term) interest rates deliberately to bring about a contraction of money or credit, often in order to preserve a fixed exchange rate. The historical episodes are memorable for their effects on economic activity and on subsequent monetary theory and policy.
This chapter was originally published in The New Palgrave: A Dictionary of Economics, 1st edition, 1987. Edited by John Eatwell, Murray Milgate and Peter Newman
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Howson, S. (1987). Dear Money. In: Durlauf, S., Blume, L. (eds) The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95121-5_142-1
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DOI: https://doi.org/10.1057/978-1-349-95121-5_142-1
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