Abstract
Difficulty in farmers obtaining loans is the core problem to the development of the rural economic growth. It caused by the rural credit market information asymmetry. It mainly manifested the adverse selection effect before the lending business to carry out and the moral hazard effect after the lending business to carry out. The paper building the model by constructing farmers borrowing and lending transactions, analysis of the rural financial market effects of adverse selection and the formation mechanism of moral hazard effects. On this basis, propose three solutions to the problem of farmer loans suggestions.
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