The Bank of Israel - Vol. 1

By Haim Barkai; Nissan Liviatan | Go to book overview

1
Emergence of the Monetary Texture
and Macroeconomic Developments,
1948–54

THE MONETARY LEGACY OF THE BRITISH MANDATE

To trace monetary developments during the formative period of the Israeli economy—the “supply and rationing” era of 1948–51—and what may be described as the diametrically opposite policy thrust that followed, the marketoriented New Economic Policy (NEP) of 1952–54, a short reference to “prehistory” may offer illuminating insights on comings and goings during the first chapter of Israel’s monetary history.

The Department of Issue, the initial skeleton of the Israeli monetary system that made its debut in August 1948, looked at first glance much like the Currency Board that Israel had inherited from the British Mandate. This Currency Board regime, initially used by the British raj to run the monetary system of India from the last decade of the nineteenth century,1 was subsequently set up throughout the British Empire. The monetary systems of the post-World War I Mandatory dependencies were fashioned along the same lines.

The Palestine Currency Board came on board in 1927, establishing a Palestinian currency in lieu of the Egyptian currency that, issued by a similar currency board, had been the country’s declared legal tender since 1919. The PCB, located in London, was given sole legal power to issue banknotes. Its modus operandi was straightforward and simple: it would sell or purchase one Palestine pound (PSP) for one pound sterling. Assets over and above the (sterling) liquidity required for day-to-day business would be invested in gilt-edged bonds, that is, British government (and Dominion) debentures. Accordingly, the PCB had a 100% reserve ratio.2

-25-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited page

Bookmark this page
The Bank of Israel - Vol. 1
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this book
  • Bookmarks
  • Highlights & Notes
  • Citations
/ 333

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.