Ben Bernanke, former chairman of the Federal Reserve Board, once made the following comment in a speech a few years after the financial crisis:
\”As we try to make the financial system safer, we must inevitably confront the problem of moral hazard.
The actions taken by central banks and other authorities to stabilize a panic in the short run, can work against stability in the long run, if investors and firms infer from those actions that they will never bear the full consequences of excessive risk-taking.\” (emphasis added)
Much of regulators\’ focus, in combating moral hazard, is to up the ante of the consequences (nowadays, CEOs and CFOs can face jail time for false financial statements, for example), or imposing limits on the potential for \”excessive\” risk-taking. Are they in essence conceding that pure capitalism is a failure?
Are you looking for a similar paper or any other quality academic essay? Then look no further. Our research paper writing service is what you require. Our team of experienced writers is on standby to deliver to you an original paper as per your specified instructions with zero plagiarism guaranteed. This is the perfect way you can prepare your own unique academic paper and score the grades you deserve.
Use the order calculator below and get started! Contact our live support team for any assistance or inquiry.