Hazard
in sentence
235 examples of Hazard in a sentence
One
hazard
is a leftist corporatism, in which labor unions and well-placed cronies replace the ruling families and army officials, but political control of the economy and bureaucratic control of entrepreneurship are maintained.
This
hazard
should trouble reformers.
If I were to
hazard
a guess, I would say that, as a society, the benefits we have received from information-age technology have been neutralized by the envy and spite that results from living in a world that is ever more unequal.
The obvious problem with eurobonds is moral hazard: how to prevent fiscally irresponsible countries from free-riding on the credit-worthiness of other member states.
All bailouts can create moral hazard, because they weaken the incentive to implement reforms that will avoid bad outcomes in the future.
The fact that such purchases are potentially unlimited would exacerbate the problem of moral
hazard.
Lastly, conservatives have trotted out the old moral
hazard
story in order to argue that a bailout would turn American manufacturing into a permanent beggar of government funds.
In fact, business has always lobbied Congress for favors and tax breaks, and the Lehman Brothers experience proved the foolishness of confusing parables about moral
hazard
with crisis management.
While the US Treasury and the IMF warned East Asian countries facing financial crises ten years ago against the risks of bail-outs and told them not to raise their interest rates, the US ignored its own lectures about moral
hazard
effects, bought up billions in mortgages, and lowered interest rates.
A surprising number of pundits seem to think that if one could only break up the big banks, governments would be far more resilient to bailouts, and the whole “moral hazard” problem would be muted.
The IMF’s first effort at prescribing a cure may be flawed, but its diagnosis of a financial sector bloated by moral
hazard
is manifestly correct.
The real lessons from the Fannie and Freddie debacle should be about the dangers of implicit government guarantees coupled with moral
hazard
and weak regulation, and the risks that lurk even in advanced financial systems.
Market fundamentalists blame this state of affairs on the moral
hazard
created by IMF bailouts.
But there can be no lender of last resort without a modicum of moral
hazard.
The world's task is to find instruments that can minimize the possibility of moral
hazard
and yet keep the level of real risk within tolerable bounds.
But crop insurance suffers from what economists call a “moral hazard,” because it reduces farmers’ incentives to ensure the crop’s success.
The moral
hazard
implicit in crop insurance can be addressed by making payouts depend not on the actual crop failure but on the bad weather that caused it.
Since the farmer cannot influence the weather, there is no moral
hazard.
And, despite “moral hazard,” about which we now hear so much and which everyone agrees was greatest in respect to nuclear-armed Russia, the West did let Russia default in 1998.
It is hard to overestimate the significance of the dilemma between solving looming problems and avoiding moral
hazard.
One school of thought, epitomized by the US government, considers moral
hazard
a valid concern but thinks it shouldn’t be overplayed: “Firehouses don’t cause fires,” as former Treasury secretary Tim Geithner put it (or, in the words of Federal Reserve Deputy Chair Stan Fischer, “condoms don’t cause sex”).
There is one thing that the presence of Ukrainian nuclear weapons would have added to today’s mix: another huge layer of potential hazard, owing to the risk of stumbling into a catastrophe through accident, miscalculation, system error, or sabotage.
As a result of this “moral hazard,” these banks can borrow on favorable terms, giving them a competitive advantage based not on superior performance but on political strength.
Those worried about the short-run contractionary effects on the economy call the first option “austerity”; those concerned about long-term sustainability and moral
hazard
call it “discipline.”
So, says Perotti, the “cut taxes now, cut spending later” combination would involve enormous moral
hazard.
But unconditional aid only delays reforms, because it weakens budget constraints, which reduces pressure on policymakers and creates moral
hazard.
And it carries its own serious risks of moral
hazard
and the loss of the ECB’s credibility and independence.
Economists are trained to worry about this problem, known as moral
hazard.
Even with dramatically improved batteries extending drones’ range, the crush of vehicles needed to move large numbers of people overhead would present a daunting safety
hazard.
He was apparently reading from a textbook on moral
hazard.
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