persuasion by oral or informal pressure, carried out by central bankers and heads of government agencies to convince bankers to do something, or refrain from doing something. Moral suasion, which stops short of legal remedies and formal rule making, can at times be highly effective because of the announcement effect Federal Reserve policy has on the markets.
persuasion through influence rather than coercion; said of the efforts of the Federal Reserve Board to achieve member bank compliance with its general policy.
persuasion through influence rather than coercion, said of the efforts of the Federal Reserve Board to achieve member bank compliance with its general policy. From time to time, the Fed uses moral suasion to restrain credit or to expand it.
