1. Tightening monetary policy will reduce the cash circulating in the market. In this way, cash flows out of the stock market or commodity market. Flowing into the real economy. In this way, there will be a lot of money fleeing from the stock market and commodity market. Causing the stock market and commodities to fall.
On the other hand, with the decrease of market cash, industrial enterprises need to spend more costs. Leading to an increase in financing costs. In this way, the economies of scale and financing of industrial enterprises will be reduced, the activities of enterprises will be reduced, and the demand for goods will be reduced. Commodities fell.