The situation is similar to that of the familiar prisoner's dilemma in game theory. Imagine Chicago in the roaring twenties. Two gangland bosses are accused of being in cahoots and having committed very serious crimes together. They are interrogated separately. Whoever admits guilt and turns state’s evidence will be immune from prosecution, whereas the other will feel the full force of the law.
Structure, Instability, and the World Economy: Reflections on the Economics of Hyman P Minksy This paper has its origin in a request by Don Brash, Governor of the Reserve Bank of New Zealand, to present a central banker’s perspective on the Asian crisis to a group of Southeast Asian central bankers. So the central banker’s perspective remains an organizing theme.