| This is, of course, deeply morally unsatisfying, and it raises real questions about moral hazard. |
| When this moral hazard is present, credit flows rapidly into inelastically supplied assets, such as real estate. |
| There are, however, important aspects to address such as moral hazard and potential implicit public support in very turbulent times. |
| It also minimizes moral hazard, by centralizing negotiations over fee structures, and eliminating the collective action problem in enforcement. |
| The Federal Reserve's successive bailouts have created a huge moral hazard problem. |
| But moral hazard reduces the ability to reallocate risk among different economic agents. |
