Dollars for Peace: The Monetary Foundations of the Two-State Solution

With Israel’s disengagement from the Gaza Strip under way, ensuring economic stability in both Israel and the Palestinian territories has become a priority issue. To promote long-term economic growth and underpin the peace process, former Saban Center Visiting Fellow Sever Plocker, argues that the United States encourage the Israeli and Palestinian economies to replace their currency, the Israeli shekel, with the U.S. dollar. Plocker is chief economics editor of Yedioth Ahronoth, Israel’s largest circulation daily newspaper. His Saban Center Analysis Paper on dollarization was published in May 2005.