Israel: Selected Issues
February 14, 2008
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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.
Subject: Banking, Expenditure, Financial institutions, Fiscal policy, Fiscal rules, Foreign exchange, Insurance companies, Public debt, Real exchange rates
Keywords: a number of Israeli bank, B. current account trend, bank, bank-customer relation, CR, current account, deficit target, Europe, expenditure ceiling, expenditure rule, Fiscal rules, Global, Insurance companies, ISCR, market, merchandise goods export, norm current account, Real exchange rates
Pages:
70
Volume:
2008
DOI:
Issue:
063
Series:
Country Report No. 2008/063
Stock No:
1ISREA2008002
ISBN:
9781451819656
ISSN:
1934-7685
