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...

This paper analyzes the economic program that led to the recent dramatic reduction of inflation in Israel. A distinction is drawn between the roles of temporary policy initiatives, such as wage-price controls, and more fundamental determinants of stability such as the government`s budget and the...

In the middle of 1985 Argentina and Israel launched frontal attacks on inflation. Both countries succeeded in reducing inflation drastically during the first year without very significant costs in terms of employment and output. Despite basic differences in the two countries` structures, the...