For example, over the past year and a half, banks have used low short-term funding rates to rebuild capital by investing in long-term government bonds. 10 This strategy is effective to a point, provided complacency does not set in over the duration of low policy rates.
3  Two game theorists who were awarded the 2005 Nobel Prize in Economic Sciences emphasized the possibility that common knowledge could generate consensus building. This is because common knowledge, by becoming a focal point for people's interest, has the potential to alter their behavior.