Need a quick clarification as to what tight and easy refer to for both monetary and fiscal policies. I think I understand fiscal policy (tight means revenue > spending and vice versa) but I’m a bit confused as to the CFA’s definition for monetary policy. In the industry we refer to a tight monetary policy as increasing interest rates (tightening) but some of the questions I’ve answered on the Wiley Qbank seem to have it the opposite? Where easy monetary policy = cut rates and tight monetary policy = hike rates.
Can someone clarify for both?
Thanks!