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Glite Dictionary
📉 Reducing growth 💪 Causing contraction ↘️ Making smaller
contractive

contractive

7.9
Causes economic activity to become smaller, usually by policy
  • adjective
  • /kənˈtræktɪv/
  • Specialized
translation icon : contractivo
  • Despite a relatively contractive fiscal policy between 1978 and 1992, conservative changes in the mix of expenditure and finance seem to have softened the effects of the international recession on unemployment in Denmark (Ministry of Finance 1993, 329).

Examples

  • The government's contractive measures aimed at curbing inflation resulted in a slowdown of economic growth.

  • Implementing contractive fiscal policies can help stabilize an economy facing recession.

  • Many experts believe that a contractive approach to spending is necessary during times of economic uncertainty.

Synonyms

contractionary
vscontractive
  • Specialized
2 8.2

That reduces economic activity by lowering spending or the money supply

covers broader reductions in size and policy measures beyond money supply
constrictive
vscontractive
6.2

Making something tight so it is hard to move

applies to economic reduction rather than physical tightening or constraint

Antonyms

expansionary
3 7.0

Helping an economy or business to grow

How Contractive

contractive
  • Specialized
7.9
deflationary
  • Specialized
7 7.3
recessionary
  • Specialized
5 7.1
neutral
218 3.6
expansionary
3 7.0

Surface Forms

contractive positive

Morphology

contractive = contract (semi-transparent) = contract + ive

Formed from 'contract' + '-ive' in a standard way, but the economic sense is somewhat specialized and learners may also associate 'contract' primarily with an agreement, which can cause confusion.

Etymology

The word contractive comes from the Latin parts con- 'together' and tract 'pull', which together give the idea of 'pulling together' or making something smaller. So a contractive fiscal policy is one that 'pulls back' growth or activity to reduce the size of the economy.