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Stabilization and Liberalization in the Israeli Economy
Abstract
This chapter examines the stabilization programs of 1985, 2003, other changes in fiscal policy and the liberalization of the Israeli economy. These programs have had dramatic effects in terms of reducing inflation, encouraging growth and improving the balance of payments and the structure of the economy. At the same time, they have reduced the role of the state and have been accompanied by growing inequality and an increase in relative poverty that resulted in an increase in transfers to households and a squeeze on other public spending.
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