In 1980, Carter was repressed during his re-election. Meanwhile, Bégin refused to dismantle Israeli settlements in the West Bank and Gaza Strip – as he had reluctantly done in Sinai – and effectively encouraged their construction, which complicated future relations with the Palestinians. For his part, Sadat was ostracized by much of the Arab world to reach Israel and was assassinated by Islamist militants in 1981. At one point, Carter Sadat and Begin went to the scene of the Battle of Gettysburg, an implicit warning about what might happen if negotiations failed. However, most of the time, he met separately with the Israeli and Egyptian teams. With his own abundant notes, he rushed between the two sides and often negotiated late into the night. In search of further negotiations, Carter invited Bégin and Sadat to the President`s shelter at Camp David in September 1978. As the direct negotiations between Sadat and Begin proved unproductive, Carter began to meet with the two leaders one by one.  While agreeing to withdraw from the Sinai Peninsula, Bégin refused to accept the creation of a Palestinian state. Israel had begun to build settlements in the West Bank, which proved to be a major obstacle to a peace agreement. In the absence of a final agreement on the Israeli withdrawal, the two sides reached an agreement in which Israel made vague promises to allow the formation of an elected government in the West Bank and Gaza Strip. In return, Egypt was the first Arab state to recognize Israel`s right to exist. The Camp David agreements were acceptable in Egypt, Israel and the Arab world, but each side agreed to negotiate a peace treaty on the basis of the agreements.
 In November 1977, Sadat was the first Arab leader to visit Israel through Jerusalem and address the Israeli Parliament. “You want to live with us in this part of the world,” Sadat said. “In all sincerity, I tell you that we welcome you safely from us.” The 1979 energy crisis ended a period of growth; Inflation and interest rates have increased, while economic growth, job creation and consumer confidence have fallen sharply.  The relatively lax monetary policy of the President of the Federal Reserve Board G.