There is no choice but to bring the chapter of earmarked bonds to a close. This arrangement not only damages the economy but also constitutes a very high barrier to the development and expansion of the funded pension savings route which, as is known, is itself far from being as widespread in Israel as it should be.
Monetary policy In August 2000, for the first time in Israel's history, the government decided on a target of price stability for the economy. This target was defined as between 1 and 3 percent, and was supposed to come into effect in and after the year 2003. Three obstacles deriving from the structure of the financial markets currently obstruct the conduct of monetary policy.