NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

The Economy of Israel

Stanley Fischer

NBER Working Paper No. 1190 (Also Reprint No. r0547)
Issued in November 1984
NBER Program(s):   EFG   ITI   IFM

The paper opens with a description of the salient features of the Israeli economy. These consist of a large government sector(the government budget has absorbed more than 80% of GNP in some recent years); high levels of defense spending; a large government budget deficit; a large current account deficit (about 20%of GNP); triple digit inflation; and extensive indexation of both wages and long term financial commitments. A descriptive model of the economy is then presented, which includes the particular asset menu of the Israeli economy, and its properties examined. Finally,the rrodel is used in analyzing aspects of the Israeli inflationary experience.The currency liberalization of 1977, which increased the access of Israelis to foreign assets, shares respensibility for the high rate of inflation. The possibilities of ending the inflation are discussed.

download in pdf format
   (1230 K)

email paper

This paper is available as PDF (1230 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Published: Fischer, Stanley. "The Economy of Israel." Carnegie-Rochester Conference Series on Public Policy, Vol. 20, (1984), pp. 7-55 and 57-67. With comments by Jacob Frenkel.

Users who downloaded this paper also downloaded these:
Michaely The Israeli Economy: An Overview
Bruno w3075 Israel's Crisis and Economic Reform: A Historical Perspective
Klein w11352 Studying Texts: A Gemara of the Israeli Economy
Bruno w1298 External Shocks and Domestic Response: Israel's Macroeconomic Performance, 1965-1982
Bufman and Leidennan Israel’s Stabilization: Some Important Policy Lessons
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us