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Much rests on whether the government can uproot moral hazard from the financial system.
By letting Lehman Brothers fail in 2008, in order to expunge the moral hazard from earlier bail-outs, American officials reprised the decision to let Guardian Trust fail in 1933.Today's officials did learn some important lessons from the 1930s.
A large concern is the residue of moral hazard from the extensive and successful efforts of central banks and governments to rescue large failing and potentially failing financial institutions.
This then leads to the need for policy: deposit insurance and/or lender of last resort facilities to head off bank runs, and bank regulation to reduce the moral hazard from these explicit or implicit guarantees.
The inquest has so far given us the phrase "moral hazard" from the governor of the Bank of England, Mervyn King, who believed it was outside his remit to rescue a bank that had got into difficulties through risky borrowing on international money markets.
A principal-agent framework is used to capture the competing interests and moral hazard from the contracting mechanism.
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To address some of these moral hazards from the health care providers' side and to reduce operational cost of NHIS, capitation payment mechanism is being contemplated to augment the current payment mechanism which is the Diagnostic Related Group DRGG).
He said that concerns about "moral hazard" stemming from the bailouts should be addressed after the initial shocks from the crisis had begun to fade, and noted that the long-term goal was for banks and other financial institutions to stand again on their own two feet.
That's the moral hazard, seen from Berlin.
On a symbolic level he can show there is support for the idea of debt relief and remove the moral hazard element from the discussion," said Nick Malkoutsis at Macropolis, an economic analysis website.
I have been concerned about the moral hazard right from the beginning there.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com