Faced with a mounting budget deficit, unemployment, and deflation, Israel’s policymakers have embarked on an ambitious yet painful program to eradicate the last vestiges of socialist economic tradition and solidify an American-style free-market system. Such an undertaking is difficult in the best of times, yet with the latest cycle of Israeli-Palestinian violence dragging into its third year, many economists feel that Israel’s economic ailments cannot be cured without resolving the crisis between Israelis and Palestinians.
To discuss the current economic crisis and its political ramifications, the Saban Center at Brookings hosted a policy luncheon forum with Sever Plocker, one of Israel’s most respected analysts, who for 13 years has served as the chief economics editor for Yediot Aharonot, Israel’s largest Hebrew daily newspaper. Mr. Plocker holds an M.A. in Economics from Hebrew University of Jerusalem and an MBA from Tel Aviv University. He is currently conducting research as a Visiting Fellow at the Saban Center on the idea of dollarizing the Israeli Shekel.