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Economic Perspectives, 4, No. 3, 1978
Disintermediation Again?
With interest rates rising since the middle of last year, the possibility of disintermediation has become a matter of growing concern. Disintermediation—the flow of savings out of depository institutions into market instruments—comes mainly from interest rates in money and capital markets rising higher than banks and thrift institutions can pay on time and savings deposits of comparable maturities.


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