DISCOUNT WINDOW BORROWING AND FEDERAL RESERVE OPERATING REGIMES

Several researchers have argued that banks discount window borrowing behavior should change if the Federal Reserve changes its short-run targets for monetary policy. This paper explores this issue by estimating borrowing equations for periods in which the Federal Reserve alternatively targeted the Federal funds rate, nonborrowed reserves, or borrowed reserves. The effect of the switch from lagged to contemporaneous reserve accounting is also examined. The results, suggest that borrowing behavior did change with changes in operating procedures and reserve accounting procedures.


Issue Date:
Oct 01 1990
Publication Type:
Working or Discussion Paper
Language:
English
Total Pages:
40




 Record created 2017-07-12, last modified 2017-08-29

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