Moral Suasion

Moral Suasion
A persuasion tactic used by an authority (i.e. Federal Reserve Board) to influence and pressure, but not force, banks into adhering to policy. Tactics used are closed-door meetings with bank directors, increased severity of inspections, appeals to community spirit, or vague threats. A good example of moral suasion is when the Fed Chairman speaks on the markets - his opinion on the overall economy can send financial markets falling or flying.

Often termed simply 'suasion', it has been used to persuade banks and other financial institutions to keep to official guidelines. The 'moral' aspect comes from the pressure for 'moral responsibility' to operate in a way that is consistent with furthering the good of the economy. In Australia, the Reserve Bank has show preference for this type of policy control. In Japan, it is known as 'window guidance' and in the U.S., it is known as 'jawboning' - exercising the persuasive power of talk rather than legislation.


Investment dictionary. . 2012.

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  • Moral suasion — (a phrase from the Latin words “moral” and “suasio” which denote respectively “conduct or character that is right and virtuous”[1] and “to present in a pleasing manner”[2] sometimes known as Jawboning[3]), is defined in the economic sphere as… …   Wikipedia

  • Moral Suasion —   [ mɔrəl sweɪʒn; englisch »gütliches Zureden«] die, Begriff und Instrument der Wirtschafts , besonders der Konjunktur und Währungspolitik. Die Moral Suasion wird angewendet, wenn sich die Träger der Wirtschaftspolitik nicht zu konkreten… …   Universal-Lexikon

  • moral suasion — noun Persuasion brought to bear by appeals to ones moral sense or ethics. The temperance movement also exacerbated ethnic tensions. Before 1850 this movement had been primarily one of self denial and moral suasion aimed at persuading the… …   Wiktionary

  • Moral Suasion — Dieser Artikel oder Abschnitt ist nicht hinreichend mit Belegen (Literatur, Webseiten oder Einzelnachweisen) versehen. Die fraglichen Angaben werden daher möglicherweise demnächst gelöscht. Hilf Wikipedia, indem du die Angaben recherchierst und… …   Deutsch Wikipedia

  • Moral suasion — Dieser Artikel oder Abschnitt ist nicht hinreichend mit Belegen (Literatur, Webseiten oder Einzelnachweisen) versehen. Die fraglichen Angaben werden daher möglicherweise demnächst gelöscht. Hilf Wikipedia, indem du die Angaben recherchierst und… …   Deutsch Wikipedia

  • Moral Suasion — Mo|ral Sua|sion [ mɔrəl sweiʒn] die; <aus engl. moral suasion »gütliches Zureden«> Begriff u. Instrument der Wirtschaftspolitik, ihre Maßnahmen z. B. durch öffentliche Stellungnahmen durchzusetzen …   Das große Fremdwörterbuch

  • moral suasion —  Pressure, influence, as opposed to citing laws and regulations. The FED has been known to use moral suasion to influence bank practices …   American business jargon

  • Moral Suasion —    The use of persuasion rather than coercion by central banks and governments to influence market participants …   Financial and business terms

  • Moral Suasion — ⇡ Maßhalteappelle …   Lexikon der Economics

  • moral suasion — A regulatory body s use of argument and persuasion, rather than coercion or legislation, to influence the activities of those within its purview. The term is often applied to the efforts of the Federal Reserve Board (see Federal Reserve System)… …   Big dictionary of business and management

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