# Moral Hazard (so also in German; “hazard” is a word coming from Arabic (al zahr) and means “playing dice”)

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- Post ID: 588400
- Modified: 2023-07-25T21:12:42+00:00
- Language: en

## Definition

Decreased mindfulness in behavior when one can expect that others - such as: Health insurance, insurance, central bank, security fund, state - will (co-)bear any losses (the lack of any incentive to guard against a risk if you are protected against it). Therefore, some translate moral hazard as "frivolous behavior", others even as "reckless recklessness". - See investment liability, buyouts, central bank, bail-out, bank triage, bank failure, Bradford nationalization, deposit insurance, euro bonds, common, European Monetary Fund, Fortis bailout, money market operations, money lender of last resort, liability, Hypo Real Estate bailout, IndyMac bankruptcy, International Monetary Fund, cobra effect, crisis burden-sharing program, London procedure, market discipline, Northern Rock debacle, risk elevation, subjective, blowback effect, single master Liquidity conduit, self-taxation, sunset proviso, too big to fail principle, insurance uncertainties, loss offset, tax, loss absorption, personal, asset levy, contractual fidelity, trust, worst case scenario, forced expropriation. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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