Suasion, Sure, But Is It Really Moral?

From alhambrapartners.com

One of the concepts educators sort of snuck into the curriculum was something they called “moral suasion.” This term has meanings outside of Economics, but within the discipline it refers to one key element to the monetary policies of central banks. Basically, persuading markets or economic groups to act in the way officials want using rhetoric or threats without having to resort to overt and explicit means. If central bankers have walked softly all these years, the so-called big stick they told you they carried with them was what Ben Bernanke had openly talked about the government’s “printing press” all ... (full story)