Economists in Israel and elsewhere have criticized the Israeli government’s aid package for rescuing the economy from the coronavirus crisis. In an international comparison presented at a conference of the Israel Economics Association, Israel placed last among the developed countries for the scope of government aid measured as a percentage of GDP. In a lecture at the conference, Prof. Martin Eichenbaum of Northwestern University warned the decision makers in Israel against “fear of the budgetary cost of intervention.”

“Government aid to the economy can be compared to a bridge laid over a chasm,” Eichenbaum said. “Since there is no way of knowing the length of the bridge required, you have to decide which risk is the greater – that the bridge will be too short, or

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