Journal title HISTORY OF ECONOMIC THOUGHT AND POLICY
Author/s Daniel Schiffman
Publishing Year 2014 Issue 2014/1 Language English
Pages 43 P. 31-73 File size 946 KB
DOI is like a bar code for intellectual property: to have more infomation click here
Below, you can see the article first page
If you want to buy this article in PDF format, you can do it, following the instructions to buy download credits
FrancoAngeli is member of Publishers International Linking Association, Inc (PILA), a not-for-profit association which run the CrossRef service enabling links to and from online scholarly content.
This paper documents Richard Kahn’s role as an unofficial advisor to the Israeli Government, using archival and published sources. In 1957, Kahn predicted that the European Economic Community (EEC) customs union would harm Israel’s trade and that the EEC would reject Israel’s application for Associate Membership. He proposed a major reform of the Cost of Living Allowance (COLA) that would significantly reduce real wage protection and move Israel closer to the Swedish wage system. In 1962, he took a neutral position regarding the sustainability of Israel’s international imbalances. He also criticized Israeli policymakers for overestimating the potential benefits of an Israel-EEC commercial agreement, and argued that the EEC would make reducing Israel’s trade deficit more difficult, even if the United Kingdom did not join. Ultimately, Israeli policymakers ignored Kahn’s advice: they continued to push for EEC Associate Membership and failed to adopt his proposal for COLA reform. In that sense, Kahn was unsuccessful as an advisor, but he was probably successful in the more limited sense of helping government officials attain greater clarity on economic issues.
Keywords: Richard Kahn, Israel, Economic Advisors, Trade Deficit, EEC, Wage Policy, COLA
Jel codes: B31, B22
Daniel Schiffman, Richard Kahn and Israeli Economic Policy, 1957 and 1962 in "HISTORY OF ECONOMIC THOUGHT AND POLICY" 1/2014, pp 31-73, DOI: 10.3280/SPE2014-001002