Incredibly, the Bank of Israel trumpets the first trade surplus in 14 years as a proof of its policy’s wisdom.
In fact, it is normal for developed economies to run trade deficits because they attract foreign investment. Israel’s October surplus, a meager $45 million, was made possible by the collapse of her imports, which contracted by 25% compared to last year.
The Bank’s policy of keeping the dollar-to-shekel rate artificially high means that consumers overpay 20-30% for the imported goods.
