Financial innovation and moral hazard

Authors

  • Titus Suciu Transilvania University of Brasov, Romania

Keywords:

financial innovation, moral hazard, solutions, securitization

Abstract

The key to understanding this financial crisis is the financial innovation and moral hazard concepts. Financial innovation consists of turning some non-liquid assets into liquid assets, tradable on the free market. Moral hazard refers to someone’s willingness to take excessive risks just because they know someone else will come and save them from the possible negative consequences.

Author Biography

Titus Suciu, Transilvania University of Brasov, Romania

Department of Finance, Accounting, and Economic Theory

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Published

2011-09-20

Issue

Vol. 4(53) No. 1 (2011)

Section

FINANCE AND ACCOUNTANCY

License

Copyright (c) 2011 Bulletin of the Transilvania University of Brasov. Series V: Economic Sciences

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.