How Shimon Peres saved the Israeli economy

In 1984, the Israeli economy was in dire straits: it had an annualized inflation of about 400 percent (and even 1,000 percent in the second half of 1984); a budget deficit of about 17 percent of the gross domestic product; and a current account deficit—driven by massive capital outflows—which drove down foreign reserves, and with it reducing the likelihood that Israel would be able to service its external debt obligations.