These comments don’t touch on monetary policy.
- There are downside risks to discount window
- You do need to be signed up for it and you do need to test
- Don’t necessarily need to preposition collateral at discount window
- Fixing discount window by modernizing it is important
- Could be unintended consequences by forcing banks to use discount window, or hold collateral at it
This article was written by Adam Button at www.forexlive.com.
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