Direct control and moral suasion, Managerial Economics

Direct control and Moral Suasion

Without actually using the above weapons, the central bank can attempt simply to use "moral suasion" to persuade the commercial banks to restrict credit when they wish to limit monetary expansion.  Its effectiveness depends on the co-operation of the commercial banks.

Posted Date: 11/29/2012 4:54:11 AM | Location : United States







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