"Understanding Israel's Credit Rating Drop Amidst Conflict and Economic Impact"

Prof. Yaron Zelekha, an economist, attributes Israel's recent credit rating downgrade by Moody's to a lack of economic policy vision and confidence in Finance Minister Bezalel Smotrich's management. Zelekha argues that the deficit was already a concern before the war, and the government's spending levels are unsustainable, leading to a lack of control over the economy's management. He warns that the downgrade could open the door to further credit downgrades, impacting the financial markets, and emphasizes the need for a new economic plan to prevent further deterioration of the state of the economy.