This paper presents a medium-scale micro-founded model with real and nominal imperfections, named "MOISE" (MOdel for the ISraeli Economy). The model was developed at the Bank of Israel to support monetary policy formulation, and builds on similar models in wide use among central banks. It...

The paper focuses on the perspectives of the 1985 stabilization that could not be envisaged at the time by its planners, led by Michael Bruno. One of these aspects is the extension of the disinflation process over many years. It turned out that the dramatic reduction of inflation in 1985 was...