Role of Central Banks and Moral Hazards Central banks have injected moral hazard into global markets as lenders of last resort, which skews investor behavior toward risky assets because the downside of risk is being underwritten by the central banks. Thus, bubbles occur, and bubbles are bound to burst. Critically discuss this statement in 2000-3000 words.
Role of Central Banks and Moral Hazards Central banks have injected moral hazard into global markets as lenders of last resort, which skews investor behavior toward risky assets because the downside of risk is being underwritten by the central banks. Thus, bubbles occur, and bubbles are bound to burst. Critically discuss this statement in 2000-3000 words.
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Role of Central Banks and Moral Hazards
Central banks have injected moral hazard into global markets as lenders of last resort, which skews investor behavior toward risky assets because the downside of risk is being underwritten by the central banks. Thus, bubbles occur, and bubbles are bound to burst.
Critically discuss this statement in 2000-3000 words.
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