Talk:Discount rate

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[edit] question about changing economic discount rate

Can anyone explain what happens when the discount rate increases, or decreases, and how this effects the Reserve ratio and interest rates in the IS/LM model?

[edit] Changing Math discount to financial discount

I'm wondering if anyone has any problems with my changing the heading from math discount rate to financial discount rate. Eventually, I would like to create a totally seperate article on the topic. cannona 21:53, 9 August 2006 (UTC)

[edit] Discount rates in South Africa

Would someone explain to me how does government determine discount rates? I understand that there is correlation between discount rates and interest rates, does this correlation mean causation?

[edit] short term? re-election?

i would like to point out that according to this nice little free pamphlet/comic book that the federal reserve bank of new york, the (united states) federal bank governers are reappointed every 14 years, and staggered in retirement so that only one retires from the position every two years so as to deter the president (of the united states) from making short-term decisions on the appointment of governors.

This fairly-well addresses the 10-year problem, and as for the 200-year problem, we'll all be basking in cosmic radiation because of earth shifting magnetic poles by then anyway, so we might as well be poor mutants.

I would like this, if it is confirmed by some more knowledgable source than myself, to be included in the paragraph concerning how short-sighted and pointless it is to have anything like a discount rate for banks.

[edit] Disambiguation needed on discount rates

I can think of several different meanings for the term that are not covered here, and are more standard uses than the "mathematical discount rate" show here. Should this be done with a separate page, or right here? I would argue that the discount rate explained here is perhaps the least common use of the term.--Gregalton 06:04, 20 November 2006 (UTC)

[edit] Federal reserve discount rate?

I followed a link here, the context of which was the U.S. Federal Reserve's "discount rate". Can disambig and any info on that specific subject be provided? 68.122.4.16 02:37, 16 July 2007 (UTC)

[edit] Comment: Not the most common meaning of discount rate

For most MBAs, the discount rate IS the rate used in a dicounted cash flow analysis. The NPV is calculated by dicuonting future cash flows using the dicount rate.

I also think it misleading to say later on that you use a rate to calculate IRR. The point of IRR is that you need not assume any rate. The cash flows themselves determine the IRR. That's the point of IRR.

Whaley51 19:06, 24 July 2007 (UTC)

Agreed on both points. Particularly on the first; after clicking on the net present value link, the viewer reads that the r in the NPV calculation is the "discount rate". I will change the page accordingly. Bjp716 (talk) 20:36, 25 March 2008 (UTC)

[edit] Economic policy

An example in the economic policy section would be very helpful. It is not clear to the non-economist (such as myself): What is the government giving a discount rate on? What does this have to do with future changes? Thanks. Noam bergman (talk) 12:00, 18 March 2008 (UTC)

[edit] non sequitur

The Economic Policy section is a total non sequitur in this article. It's founded on a definition of discount rate that is not mentioned at all in either the overview or first section of the article. You are gonna confuse a lot of people. —Preceding unsigned comment added by 12.215.181.127 (talk) 00:23, 27 March 2008 (UTC)

[edit] Economic Policy?

According to the Economic policy section, higher discount rates mean banks can make more loans. Banks, however, should be most willing to borrow when the rates are low and they can afford more loans. Does the section need some touching up, you think?

Signed by Scryer_360, to lazy to sign in. —Preceding unsigned comment added by 153.91.67.231 (talk) 02:29, 3 April 2008 (UTC)