Artificially low interest rates drive the market rate below the natural/equilibrium rate, creating a disequilibrium between savers' and investors' plans: investors try to invest more resources than are actually available while consumers don't want to delay consumption enough to free them up.

causalpending

Speaker

Larry White

Evidence Quote

it drives the market interest rate below the equilibrium or natural rate and creates a disequilibrium between the plans of savers in the plans of investors

Source

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

My Notes

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