Difference between revisions of "Discount rate"
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According to [[Principles of Economics by Timothy Taylor (3rd edition)]], | According to [[Principles of Economics by Timothy Taylor (3rd edition)]], | ||
:[[Discount rate]]. The interest rate charged by the central bank when it makes loans to commercial banks. | :[[Discount rate]]. The interest rate charged by the central bank when it makes loans to commercial banks. | ||
| − | + | According to [[Macroeconomics by Mankiw (7th edition)]], | |
| + | :[[Discount rate]]. The interest rate that the Fed charges when it makes loans to banks. | ||
[[Category: Economics]][[Category: Articles]] | [[Category: Economics]][[Category: Articles]] | ||
Revision as of 14:31, 2 July 2020
Discount rate is the interest rate charged by the central bank when it makes loans to commercial banks.
Definition
According to Principles of Economics by Timothy Taylor (3rd edition),
- Discount rate. The interest rate charged by the central bank when it makes loans to commercial banks.
According to Macroeconomics by Mankiw (7th edition),
- Discount rate. The interest rate that the Fed charges when it makes loans to banks.
