Professor Friedman restates his three reasons for adding credit to the list of intermediate targets for monetary policy: (1) policymakers should broaden their sources of information to include observations on both the asset and liability sides of the public's balance sheet; (2) the domestic...

Attention has been given recently to the issue of targeting a credit aggregate or to using information on a credit aggregate in addition to information on monetary aggregates in the implementation of monetary policy

This paper presents evidence that inflation in Israel and many OECD member states was driven largely by global factors during 2009–17. In particular, inflation in Israel was strongly correlated with that in most OECD countries in the review period of January 2009–June 2017. Furthermore, the...

The emergence of institutional investors managing the long-term retirement savings of Israeli households has clearly altered the pattern of financial intermediation in the past decade. Households increasingly hold their savings through these institutions, which in turn provide a growing share of...

This paper describes the Bank of Israel's investment philosophy and policy. The paper focuses on the strategic asset allocation framework and the role of the Monetary Policy Committee in setting the investment strategy. The abundant FX reserves in recent years, and falling yields on traditional...

The Israeli financial system withstood the global financial crisis (GFC) of 2007–09 relatively well and came out unscathed. Notwithstanding this favourable outcome, Israel is a small open economy, which means that its domestic financial conditions cannot be disconnected from the consequences...

The currency substitution and indexation infrastructure that has prevailed in Israel for over five decades had its inception before the onset of a major inflationary episode and included only minor and short-lived incidents of outright dollarisation. The present paper suggests that portfolio...