Word: shekel
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...most immediate election issue is Israel's precarious economy. In May alone, prices rose 14.3%, or an annual rate of about 400%. The shekel has lost a third of its value just since...
Israeli banks once boasted that they were "the economic oxygen of the nation." Today, however, the banks are struggling for breath along with the rest of that country's ailing economy. A bizarre financial crisis, triggered by last year's devaluation of the shekel, has shattered public confidence in Israel's lenders and forced them to slash services. With annual inflation running into three digits (190.7% in 1983), Israelis are accustomed to speculating on the government's frequent devaluations...
...first evening after his swearing-in, Shamir summoned his Cabinet for an emergency session on the economy. The meeting did not break up until 6:30 the following morning. The result: a 23% devaluation of the shekel and a sharp cut in food subsidies, meaning an average price increase of 50% on basic items like bread, milk and meat. Israelis rushed to stores and supermarkets to stock up before the prices took effect, and long lines formed at service stations in anticipation of a 23% hike in gasoline prices...
...disclosure caused a storm of protest. Geula Cohen of the Tehiya Party, a coalition member, said the next logical step was to put Abraham Lincoln's picture on the shekel. Other members described the "dollarization" plan as a blow to Israel's sovereignty that would make the country in effect the U.S.'s 51st state. Within hours, Aridor offered his resignation...
...appearances, however, are deceiving. By most yardsticks, the Israeli economy is in serious trouble. During the month of July alone, prices climbed 6.3%; the inflation rate for the year may reach a record 160%. The rise in prices has been so rapid that a 500-shekel note today is worth less than a 50-shekel note was in 1980. The country's G.N.P is expected to grow only 2% this year, after stagnating in 1982. Foreign debt is, at $20.9 billion, one of the highest per capita in the world, and the trade deficit may exceed $5 billion this...