In August 2007 and in March 2008, the Federal Reserve Board reduced the discount rate to ease

Question:

In August 2007 and in March 2008, the Federal Reserve Board reduced the to ease liquidity conditions for banks. Plot discount window borrowing (FRED code: DISCBORR) between January 2007 and December 2008. As a second line, plot on the right axis the difference between the (FRED code: DPCREDIT) and the fed funds rate target (FRED code: DFEDTAR). Did narrowing the spread between the and the federal funds target rate trigger the borrowing surge in September-October2008?

Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...