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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
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.
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.
This is, of course, deeply morally unsatisfying, and it raises real questions about moral hazard.
The Federal Reserve's successive bailouts have created a huge moral hazard problem.

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