A large spread between short-term and long-term interest rates tempts investors to borrow short and roll over the debt rather than locking in long-term funding, and this maturity mismatch is when people 'get caught out'—and the government is doing the same thing by borrowing short.

causalpending

Speaker

Larry White

Evidence Quote

it's very tempting to borrow short because it's so much cheaper and then roll over the debt and that's when people get caught out

Source

Larry White on Hayek and Money 02/01/2010EconTalk
Created: 6/17/2026, 10:31:20 AM

My Notes

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