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This book aims to set the intense political debates on one side in order to do some serious economic analysis. It assumes that a sovereign independent Palestinian state comes into existence in the West Bank and Gaza Strip, and proceeds to examine the economic policies and institutional reforms which would be appropriate for it. Key recommendations are that such a state should:* adopt a non-discriminatory trade regime* introduce a new currency with a currency board and later a hard peg to the euro* establish a new type of pension scheme combining universal and work-based elements