Moral hazard :
Lane, Timothy D.
Moral hazard : does IMF financing encourage imprudence by borrowers and lenders? / - Washington, D.C. : International Monetary Fund, 2002. - Economic issues (International Monetary Fund), 28. .
The argument that IMF financing creates moral hazard cannot be lightly dismissed. From the outset, this pamphlet recognizes that, to the extent IMF-supported programs try to contain the total economic costs of financial crises, some element of moral hazard - a greater willingness of creditors and debtors to take risks of such crises - is, in principle, an unavoidable consequence. But the key question, rather than a matter of presence or absence, is the degree of moral hazard. The most basic evidence, even in the case of countries that are supposed to be too big to fail, refutes the most extreme hypothesis - that investors believe they have a full guarantee from the IMF in the event of a financial crisis
Economic assistance
Loans, Foreign
Credit -- Moral and ethical aspects.
Loans -- Moral and ethical aspects.
International finance -- Moral and ethical aspects.
Moral hazard
Country risk
Debts, External
Evaluation
Developing countries
338.91 / LAN
Moral hazard : does IMF financing encourage imprudence by borrowers and lenders? / - Washington, D.C. : International Monetary Fund, 2002. - Economic issues (International Monetary Fund), 28. .
The argument that IMF financing creates moral hazard cannot be lightly dismissed. From the outset, this pamphlet recognizes that, to the extent IMF-supported programs try to contain the total economic costs of financial crises, some element of moral hazard - a greater willingness of creditors and debtors to take risks of such crises - is, in principle, an unavoidable consequence. But the key question, rather than a matter of presence or absence, is the degree of moral hazard. The most basic evidence, even in the case of countries that are supposed to be too big to fail, refutes the most extreme hypothesis - that investors believe they have a full guarantee from the IMF in the event of a financial crisis
Economic assistance
Loans, Foreign
Credit -- Moral and ethical aspects.
Loans -- Moral and ethical aspects.
International finance -- Moral and ethical aspects.
Moral hazard
Country risk
Debts, External
Evaluation
Developing countries
338.91 / LAN