moral hazard
noun/ˌmɒrəl ˈhæzəd/
/ˌmɔːrəl ˈhæzərd/
[uncountable, singular] (economics)- lack of reason to try to avoid risk when protected from its consequences, for example by insurance
- Cheap easy credit has created moral hazard throughout the global economy.
- The insurance creates a moral hazard for banks to engage in risky investments and loan too much money to unsuitable borrowers.
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