Nevertheless, it may be instructive to consider the differences between Israel and the US in referring to the management of monetary policy. Understanding these differences can shed light on the question of whether it is reasonable to automatically imitate the Fed–naturally only when it reduces interest. The differences What, then, are the differences? 1.
The culture of inflation  Ever since the trauma that Americans experienced in the wake of the oil crisis of the 1970s, when the inflation rate reached an intolerable level of 13.5 percent in 1980, there has been no argument in the US regarding the need to keep inflation low.