A buffer stock is used in agriculture to stabilize the price of commodities. The government purchases excess production for storage and sells that storage stock in years of low production. In general, the use of buffer stocks stabilizes commodity market price swings.
Pegging is a method used to stabilize the price of a security, commodity, or currency by intervening in the market. This term is commonly associated with maintaining exchange rate stability and supporting commodity prices, like agricultural goods, through governmental action.
Price stabilization refers to a collection of government policies designed to halt or slow down rapid changes in prices, usually during inflationary episodes or shortages.
