Appearance
Use device theme  
Dark theme
Light theme

What does moral hazard mean?

Looking for the meaning or definition of the word moral hazard? Here's what it means.

Noun
  1. (economics) The prospect that a party insulated from risk may behave differently from the way it would behave if it were fully exposed to the risk.
Find more words!
Use * for blank tiles (max 2) Advanced Search Advanced Search
Use * for blank spaces Advanced Search
Advanced Word Finder
Examples
These theories highlight the problems of moral hazard in the principal-agent relation.
But moral hazard reduces the ability to reallocate risk among different economic agents.
When this moral hazard is present, credit flows rapidly into inelastically supplied assets, such as real estate.
We are using IMF as shorthand for the entire grouping of moral hazard intensifiers we listed at the outset!
For example, if moral hazard is associated with deposit insurance, the greater risks banks take may demand stronger preventive techniques.
There are, however, important aspects to address such as moral hazard and potential implicit public support in very turbulent times.

See Also

Nearby Definitions
Find Definitions
go
Word Tools Finders & Helpers Apps More Synonyms
Copyright WordHippo © 2024