Democracy Alert

The Search for a Monetary-Policy Wizard and Political Moral Hazard
The relentless focus on monetary policy creates serious moral hazard by taking attention away from elected officials' failure to act on the fiscal, public-investment and structural issues that are the key to short- and long-term economic success ...
Read more on Wall Street Journal

Moral Hazard and College Football Recruiting
Economists refer this kind of situation as a “moral hazard.” It describes a scenario in which one party engages in risky or detrimental behavior because he or she is shielded from the full costs. For instance, imagine if taxpayers had to bail out a ...
Read more on Bloguin (blog)

Pension Protection Fund settles moral hazard claim with Russian companies
Having been unable to persuade Severstal to voluntarily contribute to the scheme, the trustees encouraged the Regulator to exercise its “moral hazard powers”, designed to prevent employers from deliberately avoiding their obligations by requiring them ...
Read more on Lexology (registration)

Of debt, moral hazards and governance
Debt forms the second leg of the three-legged stool that is funding in Kenya's public finance. The other two are taxes and donor funding. National debt can be a potent moral hazard to any leadership and while it may be a truism that there is no such ...
Read more on The Standard Digital News (satire) (press release) (registration) (blog)