Middle East: Inflation Crisis

Facing up to a disaster

Ever since his new National Unity government took office two months ago, Israel's Prime Minister Shimon Peres has been searching for ways to solve his country's economic crisis. The percentage change in the consumer price index, or inflation rate, which just last July was 307%, by last month was estimated to have reached an incredible 1,300% at a compounded annual rate. As soon as he took office, Peres and his Cabinet announced a cut of $1 billion from the current $23 billion budget. But two economists advised the...

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