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A comment on Do High Interest Rates Fix High Inflation?. Parent comment

Re:Do High Interest Rates Fix High Inflation? by mullingitover on Tuesday June 13, 2023 @05:54PM (#36318086)
I think it's the other way around - without the government stabilizing the market with subsidies, dairy would be dirt cheap, then expensive, then cheap, then totally unavailable, etc.

Edit/correction: actually, the USDA doesn't operate price floors anymore. "Eventually, the USDA decided it had had enough, ending the price support program in 2014."[1]

[1] https://modernfarmer.com/2022/05/cheese-caves-missouri/

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Re:Do High Interest Rates Fix High Inflation? by zeroonetwothree on Tuesday June 13, 2023 @11:56PM (#36321249)
The market has already come up with a solution for this--futures.
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Re:Do High Interest Rates Fix High Inflation? by sokoloff on Wednesday June 14, 2023 @06:32AM (#36323861)
The contract size for milk future is 200K pounds, a little over 23K gallons, or about 500 years of my family's consumption. It seems like policies intended to stabilize the supply and price of milk are working better than futures for my use case.
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Re:Do High Interest Rates Fix High Inflation? by nayuki on Wednesday June 14, 2023 @03:23PM (#36331199)
It's like you never heard of wholesalers vs. retailers.

You're acting like your family has to buy milk by the tankerful or flour by the palletful.

More examples from daily life: The electricity market, board lots vs. odd lots in stock trading, fractional shares, restaurant supply stores.

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