Israeli Inflation From An International Perspective
IMF Working Papers, November 1, 2000
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- Israeli Inflation From An International Perspective
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Bibliographic details
- Authors: David William Harold Orsmond, Stanley Fischer
- Published: November 1, 2000
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451858945.001
Overview and authorship
- Title: Israeli Inflation From An International Perspective
- Authors: David William Harold Orsmond, Stanley Fischer
- Publication date: November 1, 2000
- Series: Working Paper No. 2000/178
- Issue: 178
- Volume: 2000
- Pages: 45
- DOI: https://doi.org/10.5089/9781451858945.001
- ISBN: 9781451858945
- ISSN: 1018-5941
Central findings: post-stabilization inflation dynamics
- Israel experienced a period of moderate inflation following stabilization and eventually achieved disinflation.
- Comparison with other countries highlights lessons for successful disinflation efforts:
- Establish credibility in the nominal anchor early.
- Maintain a committed, persevering stance on disinflation policies.
- Achieve and maintain a tight fiscal position.
- Implement measures to reduce nominal rigidities.
- Pursue widespread structural reform.
- Israel falls short on several of these criteria, which helps explain why taming inflation in the post-stabilization period has been difficult.
- The paper concludes by considering institutional arrangements that could sustain the current low inflation levels.
Policy implications and recommendations
- Strengthen the credibility of the nominal anchor to support disinflation.
- Sustain a tight fiscal posture to complement monetary measures.
- Reduce nominal rigidities (e.g., wage and price-setting mechanisms) to lower inflation inertia.
- Implement broad structural reforms to improve adjustment flexibility in the economy.
- Consider institutional arrangements that lock in low inflation outcomes over time.
Subject areas and keywords
- 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
IMF Working Papers — Israeli Inflation From An International Perspective (Working Paper No. 2000/178), David William Harold Orsmond and Stanley Fischer, November 1, 2000.
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- Israeli Inflation from an International Perspective - WP/00/178