Alternatively, a creditor may adopt a particularly hard line in isolation without taking into account the wider implications of its actions. In each case, there is a risk of inefficient outcomes where unnecessary liquidations emerge.
Edey M and B Gray (1996), “The Evolving Structure of the Australian Financial System”, in M Edey (ed), The Future of the Financial System, Proceedings of a Conference, Reserve Bank of Australia, Sydney, 8–9 July.