Jump to ContentJump to Main Navigation
Crisis, Stabilization, and Economic ReformTherapy by Consensus$
Users without a subscription are not able to see the full content.

Michael Bruno

Print publication date: 1993

Print ISBN-13: 9780198286639

Published to Oxford Scholarship Online: September 2006

DOI: 10.1093/0198286635.001.0001

Show Summary Details
Page of

PRINTED FROM OXFORD SCHOLARSHIP ONLINE (www.oxfordscholarship.com). (c) Copyright Oxford University Press, 2019. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 19 September 2019

The Fight over Stabilization and the Structural Adjustment Process, 1985–1991

The Fight over Stabilization and the Structural Adjustment Process, 1985–1991

(p.108) 5 The Fight over Stabilization and the Structural Adjustment Process, 1985–1991
Crisis, Stabilization, and Economic Reform

Michael Bruno

Oxford University Press

This chapter analyzes the efforts to establish the credibility of both fiscal and nominal anchors in the aftermath of sharp stabilization as well as the ongoing structural reform process. It begins with an analysis of the initial stabilization phase, and then considers various alternative interpretations of the business-cycle phenomenon. It defends the real fundamentals, namely the establishment of credible fiscal discipline. This is followed by an analysis of the struggle led mainly by the Bank of Israel, over the defence of the nominal anchor, including the evolution of the exchange-rate regime in the aftermath of stabilization, and the gradual and costly learning process it entailed in wage and labour-market behaviour. The successful introduction and gradual phase-out of price controls, financial restructuring in ailing enterprises, financial market reform, and structural reform in the real economy are discussed.

Keywords:   Israel, structural reform, financial reform, restructuring

Oxford Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us .