DISCOUNT WINDOW BORROWING AND FEDERAL RESERVE OPERATING REGIMES
نویسندگان
چکیده
منابع مشابه
The Fed’s New Discount Window and Interbank Borrowing
The Federal Reserve’s new primary credit facility offers guilt-free overnight loans to commercial banks at a rate of 100 basis points over the target federal funds rate. If utilized freely by the market, the facility places an upper bound on the rates at which financial institutions lend to one another overnight, reducing the volatility of the daily effective federal funds rate. Conceivably, ho...
متن کاملIs There Stigma Associated with Discount Window Borrowing?
to such loans? This question is important to monetary policy. Like other central banks, normally the Fed makes loans to banks through its discount window. This credit has long been thought to be an important tool for responding to financial strain. But if banks are reluctant to borrow from the Fed because of a stigma attached to such loans, then the Fed’s ability to provide liquidity as a lende...
متن کاملA Model of Stigma in the Fed Funds Market
It is often the case that banks in the US are willing to borrow in the fed funds market (the interbank market for funds) at higher rates than the ones they could obtain by borrowing at the Fed’s discount window. This phenomenon is commonly explained as the consequence of the existence of a stigma effect attached to borrowing from the window. We provide a model where market participants may rega...
متن کاملFederal Reserve Bank of
This paper develops recursive methods for considering stationary sequential equilibria in games with private actions and signals (private monitoring games), where play is assumed not only to continue forever into the future, but is also assumed to have occurred forever into the past. In particular, we develop set-based methods for constructing all pure strategy equilibria of the subclass of str...
متن کاملFederal Reserve Board
Beaudry and Portier (2006) propose an identification scheme to study the effects of news shocks about future productivity in Vector Error Correction Models (VECM). This comment shows that their methodology does not have a unique solution, when applied to their VECMs with more than two variables. The problem arises from the interplay of cointegration assumptions and long-run restrictions imposed...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Economic Inquiry
سال: 1993
ISSN: 0095-2583,1465-7295
DOI: 10.1111/j.1465-7295.1993.tb00891.x