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The countercyclical subsidy/tax to production helps price stabilisation by subsidising production in periods of scarcity and by taxing it in periods of glut.
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"That helps pricing power, and also helps business-model innovation go faster".
It helped Price Waterhouse in merging with Coopers & Lybrand.
Hues was also required to help price Harriot's books and other possessions for sale to the Bodleian Library.
Production eventually falls, helping prices to stabilise.
Floods in China, a big cotton producer, also helped prices.
That stimulated sales in March and this month, and probably helped prices as well.
It routinely stockpiles supplies when prices drop, then restricts their release to help prices recover.
The tight capacity should also help pricing remain firm.
The massive glut of crude oil will certainly not help prices recover anytime soon either.
Following the 2008 peaks, good harvests for most basic foods helped prices to fall back.
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