Time again to think about Moral Hazard

"I'm a market-oriented guy, but not when I'm faced with the prospect of a global meltdown" 

President George W. Bush, 14 Nov 2008

cit. by Nicole Gelinas The Fall

https://www.amazon.de/-/en/Nicole-Gelinas/dp/B00JX0O9GO


Mitigating the COVID Economic Crisis:

Act Fast and Do Whatever It Takes

CEPR Press, 2020

http://itsr.ir/en/Content/upload/COVIDEconomicCrisis.pdf#page=32


In March 2020, as Covid-19 hit the west, prices in the $21tn US Treasuries sector went haywire as market liquidity collapsed. 

Relying on ad hoc emergency measures is not a good way to make policy, not least because it creates moral hazard. 

So, as the March anniversary looms, the Fed should explain to the public in easy-to-understand language what created the problem, and how to avoid a repeat.

Gillian Tett 4 March 2021

https://englundmacro.blogspot.com/2021/03/the-21tn-us-treasuries-sector.html


Moral Hazard

https://www.internetional.se/moralhazardwsjled0925.htm


https://scholar.google.se/scholar?q=Moral+hazard+financial+crisis&hl=en&as_sdt=0&as_vis=1&oi=scholart


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