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credit squeeze

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credit squeeze

Situation where there is insufficient money supply to meet demand. In macroeconomics, the term is used to describe a government's attempts to dampen economic activity by reducing the money supply. Measures taken by a government to do this may include raising interest rates to make borrowing more expensive and discouraging banks from lending money.



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Concern over a possible credit squeeze is growing in the 16-nation eurozone, and especially in its biggest economy, Germany.
The aim of the day was to give people advice on how to beat the current credit squeeze and the benefits they could be entitled to.
There had been a "significant fall" in sales in the UK commercial and residential markets, thanks to the credit squeeze, its report said.
 
 
 
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