As long as we were endeavoring to reduce the inflation rate-until two years ago-the argument as to whether price stability was at all possible in Israel continued.
It was claimed that it was not feasible because of structural reasons, defined as ‘nominal rigidities’ or a ‘monopolistic structure.’ In any case, a low inflation rate was said to be achievable in Israel only if it was ‘latent,’ in which case it would be bound to re-emerge at the first opportunity.