Distinguish between buffer stock and stabilizing fund policies

Distinguish between buffer stock and stabilizing fund policies

A buffer stock is a system or scheme which buys and stores stocks at times of good harvests to prevent prices falling below a target range (or price level), and releases stocks during bad harvests to prevent prices rising above a target range (or price level); whereas stabilization fund refers to government policy of creating fund or pool from where it draws money to effect payments when prices fall.

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