Hazard
in sentence
235 examples of Hazard in a sentence
Another
hazard
of Big Data is that it can be gamed.
A third
hazard
is privacy violations, because so much of the data now available contains personal information.
Bailout funds and Eurobonds were an invitation to moral
hazard.
In the regulatory school where I was trained – the Bank of England – we were told never to use that fatal phrase, for fear of generating precisely the moral
hazard
we wished to avoid.
They must also ensure that additional official financing and debt relief will not distort incentives or create moral
hazard.
But it's not quite a circle: no government would allow a repeat of the liquidity collapse seen in the 1930's, or the failure of banks and companies on a scale that puts the entire financial system at
hazard.
In practice, the proliferation of new safeguards has introduced a high degree of moral
hazard
and created perverse incentives for governments and market participants alike.
Hamilton did not have to worry about moral hazard, because the federal government did not guarantee any new debt incurred by the states.
Worried about moral
hazard?
Moral hazard, we thought, could safely be ignored, because it is “moral,” which, as every true scientist knows, just means “imaginary.”
But a market is not a rocket, economists are not rocket scientists, and moral
hazard
is, in human affairs, the risk that matters most.
Losing one’s life in a foreign war fought at the behest of colonial rulers was an occupational hazard; it did not qualify as a form of praiseworthy national service.
Attempting to compel transfer payments would generate moral
hazard
on the part of the recipients and resistance from the donors, with the resulting increase in tensions possibly jeopardizing the integration that has been achieved so far.
If the problem is the moral
hazard
implied by being too big to fail, the solution is not to restrict pay, but to eliminate the
hazard
by forcing shareholders to issue more equity or lose their stock when banks’ debt starts to become risky.
Game theory illustrates this moral
hazard.
Intelligent cooperation that avoids moral
hazard
should be able to prevent panic, reduce risk premiums, and permit fuller use of resources.
In the jargon of economics, this is “moral hazard.”
Yet the tough decisions that central banks must make in such circumstances – preventing destabilizing runs versus encouraging moral
hazard
– are simultaneously technocratic and political.
Some more hawkish ECB officials worry that QE will lead to moral
hazard
by weakening governments’ commitment to austerity and structural reforms.
Moreover, QE may actually reduce moral
hazard.
The broad pattern is clear: the more that governments have worried about enabling future moral
hazard
by excessive bailouts and sought to stem the rise in public debt, the worse their countries’ economies have performed.
This would provide strong protection against moral
hazard.
So, in order to neutralize moral hazard, northern European countries seek a guarantee that their profligate peripheral neighbors maintain discipline, reflected in steps taken toward greater Europe-wide governance of national fiscal policies.
Letting the ECB off the hook in this manner would simply validate for Europe as a whole the same moral
hazard
feared by German and other leaders who oppose ECB intervention.
Today’s Fed inherits the deeply entrenched moral
hazard
of the Asset Economy.
The Drug Industry’s Poison PillsBOSTON – One does not need to spend a lifetime in the global health-care sector to appreciate that substandard or counterfeit drugs are a major public-health
hazard.
They might have to pay somewhat higher interest rates to address concerns about moral
hazard.
But that label has a profound impact: it sends the unmistakable message that BPA is a health
hazard.
For economists, the debate focuses on the moral
hazard
created by ex ante expectations of a bailout, which reduce market discipline on excessive risk-taking – as well as on the unfair advantage that such implicit guarantees give to large players over their small-enough-to-fail competitors.
The EU and the ECB are worried about the moral
hazard
of any “bailout.”
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