This chapter delves into the labor supply problem in Israel and its implications on the economy. It examines the central bank's unsuccessful attempts to address the tight labor market, along with other contributing factors such as currency depreciation and declining private consumption. The chapter also explores the long-term consequences of the conflict with Hamas and the challenges Israel may face in the future.
Economists have stopped waiting for interest rates to drop because it doesn’t seem to be coming. The upward pressure on long-term bond yields suggests that this situation could last for a while. How should the world adjust? Israel’s economy might be in good enough shape to withstand the next few months, but a longer war won’t come cheap (12:00). And, Jilly Cooper’s sexy new book (18:55).
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