Jargon Alert:
Moral Hazard (Introduction)
"In short, moral hazard problems arise because people tend to be rational and to respond to incentives. Private insurance companies have understood this for years and have tried to tailor their policies appropriately. Governments have been slower to catch on, but hopefully have been learning from past mistakes."

Interesting Articles:
Moral Hazard in IMF Loans: How Big a Concern?
by Kenneth Rogoff (Harvard, former Director of the IMF's Research Department)

Moral Hazard: How does IMF lending affect debtor and creditor incentives?
by Andrew Haldane & Ashley Taylor (Bank of England)

Moral Hazard in the News:
China's Spending Fury Points to `Moral Hazard'
Andy Mukherjee (Bloomberg)