The Discount Rate

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Uploaded by on Feb 11, 2009

The discount rate and window. Lender of last resort.

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  • thanks for the video

  • hahah "ass"

  • the Federal Reserve is a series of private banks

  • @lappardas money is created out of thin air, khan said it himself, the only thing they have to do is have an offsetting liability. They can print as much as they want and they have no oversight. The Federal Reserve as Allen Greenspan has stated is not an agency of the federal government.

  • You're a good instructor. That was something I should have known a long time ago. Thank you.

  • @smokenfly514 Read Richard Maybury's book "Whatever Happened to Penny Candy?" it lays out central banking for easy understanding.

  • Read the book-"The Creature from Jekyll Island-A Second Look at

    the Federal Reserve." Great start on central banking history.

    Ron Paul 2012

  • very useful! Thank you!

  • @smokenfly514 There are several definitions. Investopedia had this to say:

    What Does Discount Rate Mean?

    1. The interest rate that an eligible depository institution is charged to borrow short-term funds directly from a Federal Reserve Bank.

    2. The interest rate used in determining the present value of future cash flows.

  • This is what Wikipedia tells me: "Present value The current worth of a future sum of money or stream of cash flows given a specified rate of return. Future cash flows are discounted at the discount rate, and the higher the discount rate, the lower the present value of the future cash flows. Determining the appropriate discount rate is the key to properly valuing future cash flows, whether they be earnings or obligations"

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