ive to most Western countries) and from 6% to 11% in the following decade, after 1985. The highest rates were registered at the beginning of the 90s - a period that saw waves of immigration the likes of which had not been seen since the early 50s. In this case, it took an average of a year for the immigrants (the majority of whom were the most educated and professional in the history of immigration to Israel) to find appropriate employment. The economic support given to these immigrants today, above and beyond the unemployment insurance benefits to which all unemployed citizens are entitled by law (since the end of the 60s), allows them to search for employment relatively unpressured. In 1997, the level of unemployment was 7.8%(estimate).InflationLike unemployment, rising prices are an obstacle to healthy economic development, since inflation limits the ability of any consumer, producer, investor, debtor, or government to plan economic steps for the near or distant future. As was the case with unemployment, the achievement of the Israeli economy lies in its success in overcoming these and associated difficulties. This was done through the refinement of the tool of linkage. The Israeli economy turned this tool into an art, and used it in an impressive manner unmatched by any other country. At first, workers' wages were linked to the Consumer Price Index (CPI) to ensure that inflation - large or small - would not hurt their purchasing power. Later, banks began linking their customers' savings to the CPI or to foreign currencies (usually the U.S. dollar) so that these customers would not be tempted to spend their money before its value dropped. For the same reason, insurance companies followed the banks' lead and began using linkage. Many with debts to collect, usually those who were selling goods or services on payment plans, also resorted to the linkage system to avoid losing on transactions as a result of the value of future payments dr...
