The Money-Injection Function of the Bank of Israel and the Inflation Process

Nissan Liviatan
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Nissan Liviatan: Bank of Israel

No 2002.04, Bank of Israel Working Papers from Bank of Israel

Abstract: This paper characterizes the monetary history of Israel since 1973 by a single quantitative index in the form of the ìmonetary injection of the Bank of Israelî. The analysis suggests that the main concern of the Bank of Israel in the inflationary period (prior to 1985) was to stabilize the variance of the monetary base rather than to reduce the rate of inflation, about which it could do very little in view of the large fiscal deficits. After the stabilization in 1985 the Bank continued to stabilize the variance of the monetary base but in this period it also followed a policy of disinflation in the framework of an inflation target regime.

Pages: 46 pages
Date: 2002-05
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https://boiwebrepec.azurefd.net/RePEc/boi/wpaper/WP_2002.04.pdf First version, 2002 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:boi:wpaper:2002.04

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