Should the Fed's discount rate be set at a penalty level, say 1 percentage point above the

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Should the Fed's discount rate be set at a penalty level, say 1 percentage point above the federal funds rate?
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...
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Principles of Money Banking and Financial Markets

ISBN: 978-0321339195

12th edition

Authors: Lawrence S. Ritter, William L. Silber, Gregory F. Udell

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