Finance Minister Yuval Steinitz 311.
(photo credit: Courtesy: Ministry of Finance spokesperson)
Finance Minister Yuval Steinitz and Bank of Israel Gov. Stanley Fischer will
present their assessment of the worsening global economy and its affect on
Israel at Sunday’s weekly cabinet meeting.
The discussion will take place
amid ongoing fears that the United States will suffer a double-dip recession,
following Standard & Poor’s unprecedented decision to downgrade the US
credit rating and after a week of wild fluctuations in global
Fed to keep US rates low for 2 years, stocks jump
Banks drag Wall Street lower as fear returns
Zev Golan, an analyst at the Jerusalem Institute of Market
Studies, told The Jerusalem Post
on Thursday that the government should not
respond to panic at home and abroad. The best thing to do would be to continue
the free market policies such as cutting taxes and not borrowing heavily,
that brought the Israeli economy to its current position of strength, he
“I would say that economic policy that is slapped together quickly
in a frantic response to the people in the streets demanding more and more is
not necessarily going to be good policy. Until now, over the past couple of
years Israel has weathered the global crises rather well through sound economic
policy and leaders who did not panic,” Golan said.
relatively speaking unaffected by the global crisis. Its unemployment rate is
far below that of America’s, its debt to GDP ratio is going better than
America’s and the European countries’.”
The ongoing protests over the
cost of living “put us on the road to joining the global crisis,” Golan warned.
If the government responds to calls to increase expenditure Israel will find
itself “in the same sad situation as Europe and the United
Regarding the weak American economy, he said Jerusalem could
make a major statement of friendship by telling Washington it no longer requires
billions in foreign aid.
“This would be a good time to make a
contribution to the United States,” Golan said.
“It will definitely
improve Israel’s image, and it would show foresight by doing it willingly on our
part rather than having the United States [making the same decision itself] in a