Ever-Normal Granary
Version 1.0.0 · Updated 2026-07-30
CORE DEFINITION
The government buys grain at a higher price during bumper years (storage) and sells at a reduced price during famine years (release). The logic of an overt scheme: counter-cyclical regulation. By leveraging time differences and capital advantages, it smooths market fluctuations, protecting both producers and consumers while the government earns a margin.
SCAFFOLDING EFFECT
Reduce cognitive load
Reservoir strategy. Enterprises should establish an 'Ever-Normal Granary' for talent or capital. During industry downturns, aggressively acquire top talent at low cost (buy grain in bumper years); during industry overheating, export services or cash out at high levels. Do not operate pro-cyclically; act counter-cyclically.
Anchor fast decisions
The Ever-Normal Granary was an ancient Chinese state granary for stabilizing grain prices: it stored grain at low prices in bumper years and released it at fair prices in famine years, using 'buy low, sell (at fair price) high' to smooth grain price fluctuations, prepare for famine, and reassure the people. It is a classic counter-cyclical regulation/strategic reserve model.
MINIMUM ACTION
In progress 0/3Practice this model in one real situation:
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Source support: Explicit
- zh.wikipedia.orghttps://zh.wikipedia.org/wiki/%E5%B8%B8%E5%B9%B3%E4%BB%93verified
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