Tuesday, September 18, 2007

The Flip Side of Israel Benefits Cuts

The Orthodox Jewish world, in particular the Charedi world, has been up in arms for a few years about the Israeli government's cutting financial benefits for welfare and similar services (e.g., link). Here is another perspective on what these cuts and other financial reforms have done to save Israel's economy from collapse: Believing in Miracles by Daniel Doron:

As the governor of the Bank of Israel, Stanley Fischer, told us: "The Israeli economy is now into its fifth year of rapid growth, of around 5 percent per year, with inflation that has averaged less than 2 percent per annum, and a large balance of payments surplus — a result of disciplined budgetary and monetary policy, structural reforms carried out over the last two decades that have integrated the Israeli economy into the world's markets, and especially of a vibrant and innovative private sector."

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