Karnit Flug on the Bank of Israel’s emergency responses and challenges ahead

The former Israeli central bank governor and current vice-president of the Israel Democracy Institute speaks with Christopher Jeffery about the BoI’s targeted emergency responses, economic uncertainties and central banking independence

Karnit Flug

How would you assess challenges facing Israeli policy-makers following the Hamas attacks in Israel and Israel’s retaliatory strikes in Gaza since early October?

Israel had experienced war and rounds of violence before. So, we have some sense of the main channels through which these kinds of events affect the economy. But the level of uncertainty remains huge, because much will depend on whether the war is contained within one front [in Gaza], or if events in the northern border area [with

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