Episode 328: Let's talk about the stigma of the discount window!

This episode examines a report from the Federal Reserve Bank of New York titled “Can Discount Window Stigma Be Cured? An Experimental Investigation.” This paper was originally released in May 2024. The researchers conducted an experiment to see if forced regular use of the Fed’s discount window by banks would eliminate the ‘stigma’ of banks utilizing a line of credit from the lender of last resort. Does the theory work? Why is there even a ‘stigma’ to using a line of credit from the Fed? Links to the report and to Episode 216 on the discount window are included below.

Link: sr1103.pdf

Link: Episode 216: What is the discount window and how do banks get access?Podbean - https://joeberq.podbean.com/e/episode-216-what-is-the-discount-window-and-how-do-banks-get-access/?token=97c4d48bcb7971b7ea951603225d2e1b