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Economic Perspectives, Vol. 5, No. 1, 1981
1980 developments in rural credit markets
The volatility in interest rates and credit demands in national markets last year was more evident in rural areas than in past cyclical swings of the economy. The increased volatility in rural credit markets partially reflected bleak farm income prospects and uncertainties about the intent and implications of the credit controls imposed in mid- March. But the increased reliance of agricultural banks on interest-sensitive deposits was probably the major factor contributing to the greater volatility in rural credit markets.
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