Israeli Inflation From An International Perspective

Author/Editor:

David William Harold Orsmond ; Stanley Fischer

Publication Date:

November 1, 2000

Electronic Access:

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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.

Series:

Working Paper No. 2000/178

Subject:

Disinflation Fiscal policy Inflation Inflation targeting Macrostructural analysis Monetary policy Prices Structural reforms

English

Publication Date:

November 1, 2000

ISBN/ISSN:

9781451858945/1018-5941

Stock No:

WPIEA1782000

Pages:

45

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