New Calculator Assesses Personal Financial Impact of Sanctions on Israelis
Translated & summarized from Cursorinfo by baba
Dr. Peleg Samuels of Tel Aviv University has created an interactive calculator to help Israelis estimate personal financial losses from potential international sanctions. The tool models impacts on hypothetical families under various scenarios, including banking crises and trade restrictions, with potential monthly damages ranging from 700 to 16,000 shekels. It also accounts for increased mortgage payments due to interest rate hikes. The calculator aims to underscore the importance of avoiding such an economic crisis.
The story in 6 lines · by baba
- An interactive calculator estimates potential financial damage to Israeli families from international sanctions.
- Developed by Tel Aviv University lecturer Dr. Peleg Samuels, it uses data from countries like Russia and Iran.
- Scenarios predict monthly losses from 700 to 16,000 shekels, depending on sanction severity.
- Increased mortgage payments are a key consequence of expected Central Bank interest rate hikes.
- The tool aims to highlight the importance of preventing a sanctions crisis.
- 109 economists previously warned Prime Minister Benjamin Netanyahu of an impending economic catastrophe.
A new interactive calculator developed by Dr. Peleg Samuels, a lecturer at Tel Aviv University's economics faculty, allows Israeli citizens to estimate the potential financial damage to their families from international sanctions. The tool, reported by Ynet, bases its calculations on the economic experiences of countries like Russia and Iran that have faced severe restrictions. Samuels stated the calculator also helps illustrate the consequences of transitioning to cryptocurrencies, an idea previously floated by Prime Minister Benjamin Netanyahu.
The calculator uses two hypothetical Israeli families, the Cohens with a monthly income of 25,000 shekels and a 1 million shekel mortgage balance, and the Levys with a 35,000 shekel income and a 2.5 million shekel mortgage, to demonstrate potential impacts.
Three scenarios are presented: limited, targeted measures could cost families up to 700 shekels monthly due to tax increases. Severe sanctions on the banking system might result in monthly losses of 2,200 to 12,000 shekels. In a banking crisis, the risk of job loss in the high-tech sector could rise to 33%, and asset freezes might reduce pension savings by up to 160,000 shekels. Widespread trade sanctions could lead to even greater monthly household damages, potentially reaching 16,000 shekels.
All scenarios factor in the Central Bank's likely response of raising the interest rate to protect the shekel. This would instantly increase monthly mortgage payments by 7,000 shekels for the Cohen family and 17,000 shekels for the Levy family. Users can input their employment, savings, and mortgage details for a personalized forecast. Samuels emphasized the tool is for informational purposes, aiming to highlight the importance of preventing a sanctions crisis. This development follows a warning from 109 economists to Netanyahu about an impending economic catastrophe.
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