ABSTRACT
From the introduction of the security regime in the Yishuv and the inception of mobilization in October 1947 and through to the presentation of the government’s plan for an austerity policy (Tzena) on 26 April 1949, the economic sphere constituted an additional front line in the management of the war effort. The measures introduced as part of the process of economic mobilization included the adaptation of the economy to meet the needs of the war effort and military production. The public was urged to contribute to financing the war and the supply of vital services was ensured. In April 1949, despite the transition from the war period to the post-war era, the state of emergency remained intact. Indeed, a new economic state of emergency was declared – the austerity. Thus by means of a gradual process beginning during the end phase of the war, and against the background of the absorption of immigrants and the demobilization of soldiers, the emphasis shifted from the military struggle to the fight against inflation and the effort for economic survival.
