Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/300493 
Year of Publication: 
2024
Series/Report no.: 
Staff Report No. 1103
Publisher: 
Federal Reserve Bank of New York, New York, NY
Abstract: 
A core responsibility of a central bank is to ensure financial stability by acting as the "lender of last resort" through its Discount Window. The Discount Window, however, has not been effective because its usage is stigmatized. In this paper, we study experimentally how such stigma can be cured. We find that, once a Discount Window facility is stigmatized, removing stigma is difficult. This result is consistent with the Federal Reserve's experiences which have been unsuccessful at removing the stigma associated with its Discount Window.
Subjects: 
lender of last resort
discount window
stigma
laboratory experiment
JEL: 
E58
G01
C92
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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