Means of Macroeconomic Regulation of Prices

Means of Macroeconomic Regulation of Prices
(I) Significant goods reserve system and price regulatory fund
It is an economic means by which the government regulates and manages prices. Significant goods refer to commodities that have a significant impact on the national economy and people's livelihood, often experience imbalances in supply and demand, and are produced and sold in large quantities, such as grain, cotton, edible oil, meat, eggs, etc. Their market prices are regulated by establishing regulatory commodity inventory and through inventory throughput. Such inventory is divided into national reserves and local reserves. Price regulatory fund is a special fund used by the government to stabilize and level market prices, balance supply and demand, or subsidize specific business operators. China has established regulatory funds for non-staple food, grain, and agricultural production materials. The sources of such funds are government finance and social collection.
(II) Price detection system
Price detection system is a system for detecting changes in the prices of significant goods and services, and providing feedback, analysis, and prediction of such changes. It is a prerequisite for making macro decisions.
(III) Protective prices of significant agricultural products
When the market purchase price of grain or any other significant agricultural product is too low, the government may apply protective prices during the purchase, that is, the minimum protective price and minimum purchase price, and take corresponding economic measures to ensure their effects. The cultivation of agricultural products is greatly influenced by natural conditions and is entirely regulated by the market, making it easy for their purchase prices to skyrocket and plummet. Setting a minimum purchase price plays an important role in protecting the enthusiasm of producers, stabilizing market prices, and protecting consumer interests.
(IV) Price intervention measures and emergency measures
(1) Price intervention measures: The measures taken by the State Council and provincial people's governments for certain prices when the prices of significant goods and services have risen significantly or are likely to rise significantly, such as limiting the price difference or profit margin, setting price limits, implementing price increase declaration systems, and price adjustment filing systems. Four types of intervention measures may be taken.
(2) Price emergency measures: When there is a drastic fluctuation in the general price level, the State Council may take emergency measures, such as temporary centralized pricing powers and functions and partial or comprehensive price freezing, in the whole country or in a sector or region. There are two types of price emergency measures.
The above measures are all temporary and extraordinary measures, and should be cancelled in a timely manner after the cause for their implementation disappears.