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"If employers agree to all kinds of wage agreements that they cannot afford, you have huge moral hazard problems.
Can we say that those moral hazard problems would have to be incredibly severe to justify contractionary monetary policy in a depressed economy?
The financial system is shot through with moral hazard problems stemming from financial rescues of the recent and more distance past.
If we never have such crises it is a sign that we have too little debt in the world financial system that too many investments are equity, which carries its own corporate governance and moral hazard problems with it.
It created substantial moral hazard problems and brought risks of its own, including taxpayer exposure to large bank losses and corruption concerns.After the dust settled, Congress set to work devising new banking rules designed to ensure that in the future too-big-to-fail banks could be allowed to fail.
The moral hazard problems associated with this system are rather obvious.
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Mr. Rubin said that the moral hazard problem was "extremely important".
There will be a clear "moral hazard" problem should the U.S. bail out California.
This is the "moral hazard" problem that the economist Kenneth Arrow identified as long ago as 1963.
Its funding mechanism is designed to minimize the moral hazard problem created by the EMF itself.
Mr. Volcker also warned that the government bailouts had left a huge "moral hazard" problem.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com