* * * Accompanying slides "I should like to thank the organizers of the conference for inviting me to participate and share with you Israel’s experience with inflation targeting, and particularly our recent experience which is not unlike that of many other small open economies except perhaps in a more accentuated form: solid growth, rising wages, strong currency and inflation not only below its target but mostly in negative territory for 3 consecutive years.
As a general background, let me recall that Israel saw a decade of hyperinflation in the 70’s and early 80’s, followed by a decade of disinflation policy that targeted a gradually diminishing inflation rate, while the present day 1%-3% range for top line inflation has been effective since 2003.