Bank of Israel paper underlines importance of fiscal discipline

bank-of-israel-building

A research paper, published by the Bank of Israel on July 17, compares Israel's experience of two crises – between 2001–03 and the most recent financial crisis – suggesting reasons for the two different economic outcomes.

The authors, Kobi Braude and Karnit Flug, show that the government's high level of debt prior to the crisis in 2001 caused counter-cyclical policies to fail, as lack of market confidence pushed up bond yields. This, the authors say, in turn forced the Bank of Israel to raise

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: