After issuing a warning more than a month ago about the possible economic consequences of the Israeli government’s planned changes to the country’s legal system, a group of hundreds of senior economists have signed a new open letter warning against the long-term damage to economic growth and the quality of life in Israel.
“In recent weeks,” the letter states, “the first signs of capital flight have appeared, forcing the Bank of Israel to continue raising its interest rate rapidly. term, the cumulative experience of other countries where the independence of legal and economic institutions has been undermined, and economic research over decades, indicate that there will be long-term damage to the rate of growth of the economy and the quality of life of the residents of Israel. Still not too late to stop the train before the abyss.”
The letter also refers to warnings from world leaders and international financial institutions, including credit rating agencies, foreign venture capitalists who have instructed companies to move their money out of Israel, and Israeli companies that have transferred money overseas and are planning to relocate their businesses overseas as well.
“We call on the government of Israel to heed the many voices of warning at home and abroad, including the voices of high-level economists the Prime Minister has come to consult over the years. “The cumulative experience in other countries where politicians have ignored the warnings of economists – as happened in Britain just a few months ago – shows that such disregard risks costing us dearly.”
Among the signatories of the letter are Professor Jacob Frenkel, former Governor of the Bank of Israel, Professor Eytan Sheshinski, Professor Manuel Trajtenberg, Professor Martin Eichenbaum, Professor Eugene Kandel, Professor Nicole Adler, Professor Omer Moav . , Teacher. Avishay Braverman, Prof. Zvi Eckstein, Prof. Elise Brezis, Porf. Avi Ben-Bassat, Pr Udi Nisan, Pr Michel Strawczynski, Pr Reuben Gronau, Pr Daniel Tsiddon, Porf. Rafi Melnick, Professor Nathan Sussman, Professor Yossi Spiegel, Professor Moshe Hazan and Professor Itai Ater.
Published by Globes, Israel business news – en.globes.co.il – March 2, 2023.
© Copyright Globes Publisher Itonut (1983) Ltd., 2023.