Press Releases

Economic Quarterly

Feb. 6, 2017

Richmond Fed’s Economic Quarterly Examines Models of Discount Window Lending

Richmond, Va.

The Richmond Fed’s new Economic Quarterly reviews the literature on the role of the central bank’s discount window as an instrument of a lender of last resort policy. Richmond Fed Economist Huberto Ennis focuses on general equilibrium rationalizations of the policy using formal economic models. 

For each of the main papers in the literature, Ennis describes the model and the main mechanisms at play. He synthesizes the literature by identifying common features across models and some lessons that may be useful for policymaking. 

This article and others in the latest issue of Economic Quarterly are available on our website.

Also in this issue:

  • Consumer Payment Choice in the Fifth District: Learning From a Retail Chain by Zhu Wang and Alexander L. Wolman
  • How Large Are Returns to Scale in the U.S.? A View Across the Boundary by Thomas A. Lubik

The Economic Quarterly is a free publication containing economic analysis pertinent to Federal Reserve monetary and banking policy. More information is available at (800) 322-0565 or online.


As part of our nation’s central bank, the Richmond Fed is one of 12 regional Reserve Banks working together with the Board of Governors to support a healthy economy and deliver on our mission to foster economic stability and strength. We connect with community and business leaders across the Fifth Federal Reserve District—including the Carolinas, District of Columbia, Maryland, Virginia, and most of West Virginia—to monitor economic conditions, address issues facing our communities, and share this information with monetary and financial policymakers. We also work with banks to ensure they are operating safely and soundly, supply financial institutions with currency that’s fit for distribution, and provide a safe and efficient way to transfer funds through our nation’s payments system.

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