Israeli Inflation From An International Perspective

By David William Harold Orsmond, Stanley Fischer

November 1, 2000

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Format: Chicago

David William Harold Orsmond, and Stanley Fischer. Israeli Inflation From An International Perspective, (USA: International Monetary Fund, 2000) accessed December 26, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

Israel’s post-stabilization experience of moderate inflation and eventual disinflation is compared with experiences in other countries. Lessons that emerge from an examination of international experiences indicate the importance of establishing early on credibility in the nominal anchor and a commitment to persevere with disinflation policies, achieving and maintaining a tight fiscal position, measures to reduce nominal rigidities, and widespread structural reform. Israel falls short on several criteria which explains why taming inflation in the post-stabilization period has been difficult. The paper concludes with a consideration of institutional arrangements that could sustain the current low inflation levels.

Subject: Disinflation, Fiscal policy, Inflation, Inflation targeting, Macrostructural analysis, Monetary policy, Prices, Structural reforms

Keywords: Anti-inflation policy, Backward-looking inflation threshold, Digit inflation, Disinflation, Disinflation effort, Global, Inflation, Inflation expectation, Inflation experience, Inflation experience of Israel, Inflation inertia, Inflation level, Inflation pressure, Inflation target, Inflation targeting, Moderate inflation, Private sector, Stabilization inflation plateau, Structural reforms, WP

Publication Details

Pages:

45
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2000/178
Stock No:

WPIEA1782000
ISBN:

9781451858945
ISSN:

1018-5941

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