Explore the differences between moral and morale hazards, and their impact on insurance behavior and policy design.

Washington’s favorite term these days is “moral hazard.” Though this buzzphrase may seem like a complex and even intimidating idea, most of us, whether we consciously or not, understand the principle ...

When the 2008 financial crisis pushed the global economy to the brink, governments intervened with massive taxpayer-funded bailouts for banks deemed “too big to fail.” This sparked a furious debate: ...

With the stock market whipsawed over concerns about a banking crisis, there's been a lot of debate on Wall Street and in Washington about the actions that the Federal Reserve and the Treasury have ...

Washington’s favorite term these days is “moral hazard.” Though this buzzphrase may seem like a complex and even intimidating idea, most of us, whether consciously or not, understand the principle ...

"Moral hazard" involves someone taking an action that will benefit them if it succeeds, while knowing they won't have to bear the consequences if it doesn't. The term is typically used to describe an ...

BOSTON -- I don't know too many economists who get confused with preachers. But there are times when they talk about virtue and temptation as if they were free-market holy rollers. Consider the phrase ...

The failures of Silicon Valley Bank (SVB) and Signature Bank, and the Federal Deposit Insurance Corp.'s about-face on covering uninsured deposits brings to light one of the inequities in the FDIC's ...

Senators Bill Hagerty and Angela Alsobrooks have introduced legislation that would raise the FDIC deposit insurance limit on noninterest-bearing transactions account balances from $250,000 to $10 ...

It's clear we have a student loan debt crisis on our hands, but that doesn’t mean all experts agree on how to turn things around. Where some believe student borrowers should pull up their bootstraps ...

Washington's favorite term these days is "moral hazard." Though this buzzphrase may seem like a complex and even intimidating idea, most of us, whether consciously or not, understand the principle ...