ABSTRACT
This chapter reviews the economic policies of the Israeli Government since the coming to power of the Likud-led coalition in 1977, which ultimately led to Aridor's proposals. The principal players in economic policy making were the finance ministers. Prime Minister Begin took little interest in economic policy and usually endorsed policies established by the ministers. The Israeli cabinet was plunged into crisis when the press revealed that Finance Minister Yoram Aridor planned to move the economy onto a dollar. The Likud itself is a bloc composed of former Prime Minister Begin's Herut party, the Liberals, and the small La'am party. The coalition included religious parties, the Democratic Movement for Change, and other small parties. The Labor party, successor to the labor socialist parties which led Israeli governments since the founding of the state, had set a major role for government in the economy.
