Israel: Selected Issues

Volume/Issue: Volume 2008 Issue 063
Publication date: February 2008
ISBN: 9781451819656
$20.00
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Topics covered in this book

This title contains information about the following subjects. Click on a subject if you would like to see other titles with the same subjects.

Banks and Banking , Exports and Imports , Public Finance , ISCR , CR , bank , market , current account , expenditure rule , B , current account trend , bank-customer relation , deficit target , merchandise goods export , norm current account , expenditure ceiling , a number of Israeli bank , Insurance companies , Real exchange rates , Fiscal rules , Global , Europe

Summary

The methodologies used in this paper suggest that Israel’s real exchange rate is moderately undervalued, while gains in external competitiveness appear to have been eroded in recent years. Market-based indicators provide a useful additional dimension to the analysis of financial stability in Israel. The Israeli government has made far-reaching reforms to financial markets in recent years. Banks’ performance and financial strength have been improving. This paper proposes two rules that are based on a debt-brake concept and an alternative error-correction-mechanism toward fiscal policy in Israel.