Definition of moral hazard in English:

moral hazard

Line breaks: moral haz¦ard

noun

[mass noun] Economics
  • Lack of incentive to guard against risk where one is protected from its consequences, e.g. by insurance.
    More example sentences
    • He is creating moral hazard by making investors think that investment risks are minimized simply by skimming an independent stock research report.
    • The recent history of the credit system can be thought of as the evolution of increasingly successful methods of reducing the risk premium caused by hidden information and moral hazard.
    • For example, if moral hazard is associated with deposit insurance, the greater risks banks take may demand stronger preventive techniques.

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Pronunciation: mɪˈlɔːd
noun
used to address an English nobleman