WHAT ARE THE TRANSMITTING CHANNELS OF 2007-2008 GLOBAL FINANCIAL CRISIS TO THE ECONOMY OF PALESTINE? AND HOW THE LAST IS INFLUENCED AND SURVIVED?

The economy of Palestine is significantly affected by Israel's economic shock policies especially in the absence of any economic and political settlements between both parties in which these impediments are creating great challenges for the prospected final solution. This paper would collocate the way through a brief definition of the global financial crisis of 2007-2008, its origin, its causes, effects, and its transmitted channels. Then, this paper would also discuss the meaning of monetary policy in general with its tasks, its major components, and mechanisms. Going deeply, the literature reviews would go further to the topic nucleus through defining the Palestine Monetary Authority (PMA), its origin, its territories' governance, its functions, and mentioning the main official currencies that are circulating in Palestine. The influence of global financial crisis of 2007-2008 on the economy of Palestine would be provoked with emphasizing on channels that transmitted this crisis to Palestinian economy and how the last survived under the existing light of deliberated Israeli procedures. Nevertheless, for the purpose of presenting the full picture, this paper would illustrate the current Palestine Monetary Policy (PMP) during the years of 2011-2015 with its main elements, interlaced links, and mechanisms such as growth, inflation, and unemployment rates, clearance and grants as a percent of public revenues and expenditures, domestic saving as a percent of GDP for selected countries compared to Palestine, lending and deposit interest rates for the main circulated currency in Palestine such as USD, Jordanian Dinar (JOD), and New Israeli Shekel (NIS), and annual change in USD exchange rate against New Israeli Shekel (NIS) in Palestine; and how all of that together with the deliberated Israeli procedures would massively affect the PMP during the years of this study. Finally, the conclusion and future research would be settled down at the end of this paper.