In case of multiple creditors a coordination problem can arise when the borrowingfirm runs into financial distress … on theirloans. We develop a model of creditor coordination where a large creditor movesbefore a continuum of small … information. We derive conditions under which pure herdingbehavior is to be expected. -- creditor coordination ; global games …

This paper examines the ability of a policy maker to control equilibrium outcomes in a global coordination game … into a position where both the optimal policy and the coordination outcome are dictated by self-fulfilling market …