It is rarely noticed, Joan Robinson wrote half a century ago, that "the very nature of economics is rooted in nationalism." This book seeks to examine the relationship between economics and nationalism in the Israeli political economy in its formative years. The book focuses on two aspects of this relationship: the link between national interest and economic ideas and between the state and the markets
Two questions are at the core of the book. The first, what was the role of economic ideas in shaping the national interests? A common argument holds that the realization of national interest contradicts behavior in accordance to economic rationales. The book rejects this view and it shows that as early as the 1930s the Zionist organizations shaped national interest on the basis of imported and translated economic ideas.
The second question deals with the relationship between the state and the market: how state actors mediated between, on the one hand, the goal of constructing of a market economy in Israeli, and on the other hand the strategy of mobilizing market-actor to state-building project? The book rejects the common argument that state intervention prevented the consolidation of a market economy in Israeli. Rather, it argues that the state intervened, among other things, to create a market economy as a national project of the state.
A significant contribution of the book is the analysis of the financial aspects of the Israeli developmental strategy, a topic that so far has not been studied thoroughly. The book traces that the effect of the establishment of the Bank of Israel on the structure of the banking system and the development strategy. It argues that the establishment of the Bank of Israel was a significant milestone in the economic history of Israel, as it provided an effective tool to control the allocation of credit.