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Why are prices in Israel higher than the rest of the world?

During a recent three-week holiday in Japan, I decided to dedicate a morning to economic matters. I met with two senior Japanese banking officials, and together we examined the differences between the Japanese and Israeli economies. We also discussed cost-of-living in Israel, where many products are...

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Lowering the Interest Rate – Benefits and Risks

A few monthes have passed since the Bank of Israel decided to reduce the interest rate to a historic low of 0.25 percent, further to interest rate reductions prior to this move. The interest rate remained at 0.25 percent in October as well. The low rate resulted from a lack of options, as Israel wit...

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How does the Decrease in Credit Effect Businesses?

An article was published on the “Calcalist” website that connected the trend of decreasing commercial credit to the slowdown in the market. According to the article, in the first quarter of 2014 the demand for credit has dropped by 5 percent. This amounts to 12 billion NIS. That credit, which th...

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Government Companies Losses: The Problem Goes Far Beyond that of Employee Salaries

An article was published on the “The Marker” website that surveyed the losses of government companies throughout 2013, following the Government Companies Authority report presented to the Minister of Finance, Yair Lapid. According to the report, the companies with the highest level of losses ove...

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The Plans to Reduce Housing Prices Will Help – but Only in the Short Term

Two important programs were recently discussed in the media relating to the real estate market in Israel: the first is the zero percent VAT program for qualified, firs-time home buyers, and the second is the “target price” auctions, which will be 20 percent less than the market price. An article...

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Limiting the Use of Cash – Can We Expect to Benefit from the Reform?

News and financial stations, including “TheMarker”, recently published stories reporting a reform expected to be presented soon which will limit the use of cash. As part of the reform, cash payment for transactions greater than 5,000 NIS will be prohibited. Likewise, check trading will be discon...

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Banking and Capital Market Reforms

Recently, a public debate as to the necessity of Israeli Banking Reforms has arisen. However, before discussing the proposed reforms – we shall in fact examine and analyze the reforms we have witnessed this past decade The Brodet Committee – reducing the amount of real assets held by the banks T...

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Lower taxes will lead to an increased deficit

As far as the end result is concerned, the cost of living in Israel is in fact higher than in other European western countries or that of The United States. The high cost of living is derived mainly from the government’s taxation policies and on our unique geographic position which forces us t...

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The decision to allow 40% gas exports is a wise choice

First and foremost, we all must remember that no matter how we look at it, the natural gas exporting issue is one, of an economic, social and moral importance. The point is that anyone who claims to know for sure what the future holds for the global energy markets (and therefore knowing the exact ap...

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Both Haredim and the Arab Population must Become an Integral part of the Israeli Economy

Naturally, the Israeli public has expressed his frustration and disappointment in light of the first budget passed by the new Finance Minister Yair Lapid. In this article I would like to address and analyze some of the steps implemented by Lapid: Raising the tax rates too high would cause negative c...

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