Viewpoints
Opinion

High Time Preference Is the Cause of Increases in Long-Term Interest Rates

High Time Preference Is the Cause of Increases in Long-Term Interest Rates
An Electric Time Company employee adjusts the color on a clock at the plant in Medfield, Mass., on Oct. 30, 2008, days before the switch to standard time. Elise Amendola/AP Photo
Frank Shostak
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Commentary

After closing at 0.54 percent in July 2020, the yield on the 10-year U.S. Treasury Bond settled at 4.57 percent in December 2024. Some commentators believe that the massive increase in yields is because of a strong increase in inflationary expectations.

Frank Shostak
Frank Shostak
Author
Frank Shostak, Ph.D., is an associated scholar of the Mises Institute. His consulting firm, Applied Austrian School Economics, provides in-depth assessments and reports of financial markets and global economies. He has taught at the University of Pretoria and the Graduate Business School at Witwatersrand University.