ABSTRACT
Inflation is one of those concepts that seem clearer on the surface than it is in reality. The what of inflation is an economic concept: the rate at which the general level of prices is changing. International or domestic events could change the character of Israeli politics and thereby alter the reluctance of ministers to sacrifice significant programs and slices of their budgets. The Israeli experience resembles that in other countries, where multiple roles and complex political economies confuse any simple rendering of inflation's score card. Israelis' socioeconomic roles can be defined as membership in social class, income category, ethnic group; as wage earner, salaried, or independent; as debtor or creditor; and as dependent on the budget of one or another governmental organization. Policymakers continue to struggle with the threats of inflation, and the cloudy picture of alleged causes and effects.
