Top definition
In helping to correct a problem which originated in past poor moral judgments, creating incentives for the same problem to repeat in the future without addressing the original poor moral judgments. Since there is an expectation that one was helped once, one will be helped again.
Giving money to banks which do not reform their mortgage lending practices creates a moral hazard
by patsw March 02, 2009
Get the mug
Get a moral hazard mug for your dog Vivek.