The recent financial crisis shook not only the global economy but also conventional wisdom about economic policy. After the collapse of Lehman Brothers in September 2008, policy makers reversed course and acted on an unprecedented scale. The policy response was remarkable both for its magnitude and for the variety of measures undertaken. This book examines both the major role central banks played in the crisis and the role they might play in preventing or preparing for future crises.
The contributors focus on monetary policy, the new area of macroprudential policy, and issues of exchange rates, capital flows, and banking and financial markets. They look at the experiences of both developed and emerging economies, considering why some, including Israel and Australia, suffered only mild effects while others--Ireland for example--plunged into severe financial crisis.
About the Editors
Jacob Braude works in the Bank of Israel Research Department.
Zvi Eckstein is Dean of the School of Economics in the Interdisciplinary Center Herzliya, served as Deputy Governor of the Bank of Israel from 2006 to 2011, and is coauthor of Immigration and Labor Market Mobility in Israel, 1990 to 2009 (MIT Press).
Stanley Fischer is Governor of the Bank of Israel. First Deputy Managing Director of the International Monetary Fund from 1994 to 2001, Fischer is the author of IMF Essays from a Time of Crisis: The International Financial System, Stabilization, and Development (MIT Press).
Karnit Flug is Deputy Governor of the Bank of Israel and formerly Director of the Bank of Israel Research Department.