the case for and against using a buffer stock scheme to stabilise the price of a commodity such as sugar or tin. A buffer stock scheme is an intervention carried out by the government which aims to limit fluctuations in the price of a commodity. It involves the government and/or local authorities buying these storage stocks and selling them back to the famer. Price stability is indicated by low inflation whereby the value of money is also stable. A buffer stock is an attempt at stabilising the
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successful buffer-stock scheme: Stable prices help maintain farmers’ incomes and improve the incentive to grow legal crops Stability enables capital investment in agriculture needed to lift agricultural productivity Farming has positive externalities it helps to sustain rural communitiesStable prices prevent excess prices for consumers – helping consumer welfare Problems with buffer stock schemes In theory buffer stock schemes should be profit making, since they buy up stocks of the product
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government faced, characterised by a precarious buffer stock position from 2005 to 2008. Hence, blaming larger procurement and a higher msp alone for the soaring wheat prices between 2008 and 2010 is an oversimplification of the problem. The experience with wheat procurement in the recent past suggests that foodgrain procurement at a lower msp may not always be feasible. Finally, it is shown that the inability of the government to utilise the abundant wheat stocks for the benefit of the consumers during
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Using economic knowledge, evaluate different ways in which the government of a country which imports large quantities of wheat can try to stabilise wheat prices? Stabilising wheat prices can be done through a buffer stocks scheme. This is when the government tries to stabilise a market/producer which is producing too little or too much (in the case) wheat. They would do this by buying back a lot of the wheat if it rose above or by giving out some they own in their stock pile to bring production
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Briefing Note Introduction In 2007 to mid-2009, the world has suffered the worst financial crisis since the Great Depressions in 1920s. This followed by a wave of economic downturn. Learnt from the crisis, it is suggested that a forceful response by regulators, may help prevent deteriorating further. The objective of this note is to identify the crisis effects on both the financial system and the economy and to provide implications on further financial regulations. Effects Financial System:
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started to fluctuate partially in agricultural that could happen over a short period of time; these are sometimes signals to the producers what could be confusing at time. So government intervenes to change prices, to minimum and maximum prices and buffer stock scheme for the unstable fluctuation. A. Why the prices of agricultural products tend to
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Calculating what is known as buffer stock is also key to effective inventory management. Essentially, buffer stock is additional units above and beyond the minimum number required to maintain production levels. For example, the manager may determine that it would be a good idea to keep one or two extra units of a given machine part on hand, just in case an emergency situation arises or one of the units proves to be defective once installed. Creating this cushion or buffer helps to minimize the chance
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policies appreciate the role of selective inventory management know the exchange curve concept for aggregate inventory planning get a feel of some mathematical models of inventory analysis perform sensitivity analysis on a type of model compute safety stocks understand the problems of slow moving items appreciate the role of computers in inventory control have a brief idea about recent developments in inventory management. Structures 17.1 17.2 17.3 17.4 17.5 17.6 17.7 17.8 17.9 17.10 17.11 17.12 17.13
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Enhancing risk coverage........................................................................................3 Supplementing the risk-based capital requirement with a leverage ratio ...............4 Reducing procyclicality and promoting countercyclical buffers ..............................5 Cyclicality of the minimum requirement .................................................................5 Forward looking provisioning ...............................................................................
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AS Micro Essays These are some suggested AS Macro Economic essays. The essays are from different exam boards. In practise they ask similar questions. There are different ways to answer questions. But, all these answers contain enough material to get the top grade. Whenever the question requires evaluation, the essay contains the necessary critical distance. Note: These essays are for revision purposes giving suggestions for how to answer questions. Don’t try to pass them off as your own work
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