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Anticipatory discount window stigma

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Abstract

Observers often assert that stigma—a perception that depositors, investors or others will penalize an institution for borrowing from the discount window—keeps banks from borrowing when they should, making the facilities less effective. Dallas Fed Senior Vice President Sam Schulhofer-Wohl argues that some harms of discount window stigma can be mitigated regardless of whether stigma itself persists.

Suggested Citation

  • Sam Schulhofer-Wohl, 2024. "Anticipatory discount window stigma," Dallas Fed Economics 98766, Federal Reserve Bank of Dallas.
  • Handle: RePEc:fip:d00001:98766
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    File URL: https://www.dallasfed.org/research/economics/2024/0906
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