Buffer stocks for price stability?
==========
High inflation has led to new price stabilization proposals; Vice President Kamala Harris suggested rent control and anti-price-gouging policies; Economist Isabella Weber proposed public buffer stocks for food to stabilize prices and reduce volatility; Buffer stocks would be managed by the FAO or national governments; The proposal includes physical and virtual reserves to counter price manipulation; Historical context includes post-WWII discussions between Keynes and Hayek; Hayek favored a commodity reserve currency system, while Keynes advocated for active management of buffer stocks; Speculation in commodity markets can exacerbate price fluctuations; Past attempts at global buffer stock systems faced coordination issues; National systems like India's PDS and the U.S. Strategic Petroleum Reserve have inefficiencies; Public buffer stocks may not address long-term structural price changes; Effective monetary policy is essential to prevent inflation.
#Inflation #PriceStability #BufferStocks #Economics #Policy #Keynes #Hayek #FoodSecurity #Speculation #UsEconomy
https://www.brookings.edu/articles/buffer-stocks-for-price-stability/
Oddbean new post about login | logout