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Discount Window Borrowing and Money Market Interest Rates
Journal article   Peer reviewed

Discount Window Borrowing and Money Market Interest Rates

Peter Englund, Lars Hörngren and Staffan Viotti
Scandinavian Journal of Economics, Vol.91(3), pp.517-533
1989

Abstract

This paper introduces a coherent framework for analyzing the role of discount window aspects of monetary policy. It deals explicitly with discount window regimes used by European central banks. In many European countries, commercial banks have virtually limited access to borrowed reserves. The framework is used to analyze what this feature means for the effects of policy instruments and exogenous shocks.

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