Avi Ben - Bassat and Momi Dahan Economic policy entails decisions on many subjects . The two central components are ( 1 ) budget policy and ( 2 ) reforms in the structure of the economy and in the ways government authorities operate . Both require , foremost , thorough groundwork – analysis and diagnosis of the problem at hand , study of the experiences of other countries , and analysis of the policy alternatives and their cost - benefit implications for all of the economic units . Three different models can be used to prepare an economic plan : internal work in the government ministries , headed by the Ministry of Finance ; a government committee ; or a public committee . The approval of proposals requires a government decision and , subsequently , the Knesset ’ s approval . In each of the models of action , many players are involved . When the preparatory work is internal , the range of players is relatively small and usually includes the workers in the ministry responsible for the s...
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