Israeli monetary policy hits trade sectors harder than closed sectors.
The article looks at how monetary policy in Israel affects the economy since 1990. It examines if monetary policy has real effects and which ways it impacts the economy. The study finds that monetary restrictions have a small impact on overall industrial production, but sectors that trade internationally are more affected. The research suggests that changes in credit availability and exchange rates play a role in how monetary policy affects the economy, while changes in interest rates have less of an impact based on the data.