Andreas S. Koudellou

The World’s Crisis Leader, Who Has EMERGED? (lesson of moral hazard)

In Economic Institutions on October 15, 2009 at 3:52 am

Of what individuals and or institutions pertaining to leadership are we speaking?
It appears the same ‘moral hazard’ that was in existence before the economic crisis of 08′ is exactly what is leading the ‘rescue.’ The mere manifestation of a ‘fund’ (IMF, WB) or organization (G20) that encourages countries to create large debts, should not exist without MORE MULTILATERAL LEADERSHIP!

The example of Mexico in the 70’s – 90’s is an example of how debt can increase by 15 times faster than the per-capita income. This scenario emerged because of the conditions of morally hazardous investment environment. Ultimately, an even worse remedy of ‘bailout’ was exicuted.

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  1. Agreed, more multilateral leadership…..not.

  2. harder than it looks, you are an idealist.

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