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Oct 26, 2023 · The 2007-2008 financial crisis was caused by a confluence of many factors, including the Dotcom bubble burst, a low interest rate environment, financial products such as mortgage-backed...
May 27, 2021 · There are several ways to reduce moral hazard, including incentives, policies to prevent immoral behavior and regular monitoring. At the root of moral hazard is unbalanced or asymmetric...
- J.B. Maverick
In the innumerable discussions and debates about Asia’s financial turmoil, typically dated from the collapse of the Thai baht on July 2, 1997, the standard script includes an acknowledgment of a phe-nomenon called “moral hazard” (hereafter referred to as MH).
Sep 21, 2023 · Concerns about the risk-boosting effects of moral hazard are not limited to the financial realm. They show up any time that governments offer any form of “safety net” to firms or individuals, including social supports like health insurance, unemployment benefits, or sickness benefits.
Abstract: The 2008 global financial crisis raises ethical as much as financial questions. Moral outrage centered on the imbalance between banks (too big to fail) profiting from excessive risk-taking in good times and taxpayers suffering the costs in bad times.
Mar 21, 2023 · The Dodd-Frank Financial Reform Act, enacted after the 2008 financial crisis, was supposed to reduce moral hazard. One way it did that was by making it clear that accounts of more than...
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Thus, inadequate control of moral hazards often leads to socially excessive risk-taking – and excessive risk-taking is certainly a recurring theme in the current financial crisis.
