Price Freeze

1987
Genre:
Public Announcement

  • Rate
Directed by: Unknown
Production Company:Israel Film Service
Language: Hebrew
| Subtitles not available

In 1985, facing a severe economic crisis, Israel’s unity government launched an economic stabilization program to reduce inflation and stabilize the economy. The plan involved issuing emergency orders to freeze prices, limiting wage increases in cooperation with the Histadrut, banning private possession of foreign currency, freezing the dollar exchange rate, and significantly cutting government spending. Additionally, a currency reform replaced the old shekel with the new shekel at a rate of 1,000 to 1. Professor Michael Bruno, a key architect of the plan, later became the central bank governor of Israel. Despite public protests over reduced subsidies for essential goods, the price freeze policy gained widespread public support, leading to price stability and even some decrease over time. Gradually, the government lifted price control orders.

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