Moral hazard, on the other hand, almost surely played a role in Russia. Investors clearly
had grave doubts about Russia=s medium-term stability. Risk premia on Russian securities were
very high. Investors talked openly about the risk of collapse, and about the safety net provided to
Russia by the IMF and (implicitly) the G-7. Russia was simply viewed as Atoo big to fail.@ The
indicators of moral hazard in the case of Russia simply underscore the lack of such phenomena in
the case of Asia.