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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.
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Examples
Presented with the first authentic democratic challenge to their rules, they pettifogged on detail and fretted about moral hazard.
Five years ago, when the government bailed out Bear Stearns, we heard a lot about moral hazard.
The Federal Reserve's successive bailouts have created a huge moral hazard problem.
This is, of course, deeply morally unsatisfying, and it raises real questions about moral hazard.
It also minimizes moral hazard, by centralizing negotiations over fee structures, and eliminating the collective action problem in enforcement.
The pattern of bailouts since 1995 has distorted the operation of financial markets by creating moral hazard.

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