ABSTRACT
In the six years following Begin's resignation (1984–1990), Israel entered its first period of political equilibrium between Left and Right. Neither side was able to prevail over the other, and the Likud and Labor were forced to share power. Shamir and Peres took turns holding the title of Prime Minister, with Rabin as their agreed Minister of Defense, and with Arens and Modai also holding senior portfolios. This functional unity did not conceal the differences of opinion, but it did facilitate solutions to major economic and defense crises: the unity government implemented an economic program that stabilized the skyrocketing inflation and the gargantuan stock exchange crisis; it brought an end to the Lebanon War and dealt with the first Palestinian Intifada.
