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Bank of Israel Governor Stanley Fischer on the country’s defense and high economic growth rate.
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Aren't we growing and by we we mean the economy -- All across the globe US is grinding along for -- David has barely made a Liz claim and it is at the World Economic Forum in Davos Switzerland with the Ben Bernanke of one country.
That has beat some stronger nations in growth since the height of the crisis let's.
-- question for you since 2009 at which country comes out on top when it comes to the growth rate competition.
Is it Australia is that the US is as Israel is that the eurozone.
Let me tell you that it is Israel thanks in part to the vigilance of my next guest.
He is the Central Bank governor of Israel Stanley Fischer welcome and thank you for being here thanks for inviting me what looks pretty impressive Israel's growth rate over since 200914.
Point 7%.
While Australia which everybody thinks has been so strong.
Ten point 7%.
To what do you attribute that.
Well we were in a very strong position before the crisis began and so my recovery was very quick.
That we were growing by the middle of 2009.
And we.
Have been growing about 5% the year before that we came back to that rate for a couple of unison.
You know that up the new pretty close to fourteen.
You have cut rates four times rates over the past several months.
-- is that something to worry about.
No we believe -- acting preemptively.
We saw was signs of a slowing global economy.
And sort of be useful to.
Provide little more juice for the economy.
Just had a presidential election Benjamin Netanyahu was reelected but he needs to put together a coalition because he didn't get enough votes to it to really have the -- to -- runs the country.
What what next for Israel that's what do you expect happens and will the political landscape and make it more difficult or -- -- for -- when your job.
-- the key is that community key thing we have his independence -- monetary policy is under the control of Bank of Israel not.
Only me there's a Monetary Policy Committee.
As in the Fed.
And other countries.
But so what we'll be able to do would depend a lot of what sort of budget to the government puts together the new government.
And we have probably to reduce a deficit quite significantly.
Budget deficit.
So it'll be tough but today the government coming in which can put the budget in shape for three of four -- -- -- would be well advised to do that.
You're surrounded by enemies in many regards it is always a -- With Arab nations who at least some of them don't want to see Israel succeed plus now with Iran you've got that situation there's tension in Algeria.
What happened in Iraq thank gonna -- you know how worrisome has that become and doesn't affect any of the decisions you make the Central Bank.
Well the -- and the fact that that the security situation around us has changed.
For the worse in many ways.
Obviously affects the way the government to behaves in the would have fixed has affected the defense -- it.
That's something we just have to take into account.
Israel has been pretty successful in maintaining.
Peace within the borders.
Of Israel -- -- -- pretty successful.
I mean very successful one feels safe.
In Israel it -- and you were lost -- you don't walk around worrying about.
Something happening to you any minute now we want to thank you Stanley Fischer the governor of the central Bank of Israel for your time thank you.
We will see you again with us over here in Davos back to you in New York area.
