Tight inflation means that the central bank raises interest rates by reducing money issuance. The interest rate is the price of money. When the interest rate increases, the opportunity cost of all investment activities will increase.

For a simple example, in the two activities of investing in stocks and deposits, the higher the interest rate, the greater the attraction of deposits, so the attraction of investing in stocks is relatively reduced. All other investment activities are the same.

Therefore, the negative impact of tight monetary policy is to increase the opportunity cost of other economic activities by raising the price of money, reduce the liquidity of money and inhibit investment activities, thus inhibiting GDP growth.

Two of the four reasons mentioned in the third layer are inappropriate (the other is also ambiguous):

1, there is no direct relationship between government public expenditure and tight monetary policy.

2. Inhibition of common root swelling is not a "negative cause".

3, is not conducive to foreign investment-very vague.