This paper examines the ability of a policy maker to control equilibrium outcomes in a global coordination game …; applications include currency attacks, bank runs, and debt crises. A unique equilibrium is known to survive when the policy is …

class of revelation mechanisms that, although it does not always permit a complete equilibrium characterization, it … facilitates the characterization of the equilibrium outcomes that are typically of interest in applications (those sustained by … also equilibrium outcomes sustained by non-Markov strategies and/or mixed-strategy profiles. -- Mechanism design …

. (iii) The set of types who intervene shrinks with the precision of market information. (iv) A unique equilibrium policy …

originates in the signaling role of policy choices. A novel procedure of iterated elimination of non-equilibrium strategies is … equilibrium selections. The sharpness of these predictions improves as the noise gets smaller, but disappears in the complete …