Members of JPC were privileged on Sunday, April 6, when Dr. Karnit Flug, Governor of the Bank of Israel, gave her first ever briefing to the Foreign Press based in Israel. Dr. Flug spoke about the general resilience of the Israeli economy, but cautioned that the Israeli Government will have to monitor its expenses, so that the deficit target should be maintained.
The details that Dr. Flug presented during the briefing can be found here.
As originally published in The Wall Street Journal:
Bank of Israel Governor Karnit Flug gave her first press conference to foreign journalists since being appointed to the position late last year and almost immediately found herself navigating around sticky questions about politics rather than economics.
Asked whether the possibility of a cessation in peace negotiations with the Palestinians and potential boycotts would have an impact on Israel’s economy, the central bank chief acknowledged that Israel stands to get an upside boost in foreign direct investment if the sides were ever to reach a deal. But in the next breath, Ms. Flug sought to minimize the downside potential of a collapse.
About Dr. Karnit Flug:
Dr. Flug was appointed Governor of the Bank of Israel by the President of Israel on November 13, 2013.
She previously served as Deputy Governor of the Bank of Israel from July 2011, when she was appointed to the post by the Israeli Government. From July 2013 until November 2013, Dr. Flug served as Acting Governor of the Bank of Israel.
Dr. Flug received her M.A. (cum laude) in Economics from the Hebrew University in 1980, and her Ph.D. in Economics from Columbia University in 1985.
In 1984, Dr. Flug joined the IMF as an economist. In 1988, she returned to Israel and joined the Research Department of the Bank of Israel, where she worked and published papers on topics including macroeconomics, the labor market and social policies. In 1994–96, while on leave from the Bank of Israel, Dr. Flug worked at the Inter-American Development Bank as a senior research economist. In 1997, upon return to the Bank of Israel, she was appointed Deputy Director of the Research Department, and in June 2001 she was appointed Director of the Research Department and a member of the Bank’s senior management—a position she held for 10 years.
Dr. Flug has served on a number of public and government committees, including the Committee on Increasing Competitiveness in the Economy, the Committee for Social and Economic Change (“the Trajtenberg Committee”), the Committee for the Defense Budget (“the Brodet Committee”), and the Committee to Study Raising the Retirement Age for Women.
