Lai, Ching-Chong; Chang, Juin-Jen - In: The Journal of Economic Education 32 (2001) 4, pp. 369-380
<title>Abstract</title> The authors present a pedagogical graphical exposition to illustrate the stabilizing effect of price target zones. Based on a textbook AD-AS apparatus, they find that authorities' commitment to defend a price target zone will affect the public's inflation expectations and, in turn,...