Budget deficit lowest since August 2011
Harvard Professor Elhanan Helpman is reluctant to take the post.
Prime Minister Benjamin Netanyahu continues to press Prof. Elhanan Helpman, who was educated in Israel and has taught here, into accepting the job of Governor of the Bank of Israel. At the same time, sources inform "Globes," Netanyahu is continuing to look for a suitable candidate to succeed Prof. Stanley Fischer who steps down at the end of the month.
Helpman is Galen L. Stone Professor of International Trade at Harvard University and a Fellow of the Canadian Institute for Advanced Research. He is Netanyahu's preferred candidate but has informed the Israeli prime minister both orally and in writing that he is not prepared to take the job. Helpman is currently in Israel to take part in the farewell conference for Fischer. Sources close to Netanyahu insist that the last word has not yet been said on Helpman's possible appointment, and it is hoped that he will reconsider out of "Zionist" motives and the possibility of "leading the economy into faster growth."
This is the second time that Netanyahu has offered the job to Helpman. The first was when David Klein stepped down as Governor when Netanyahu was Minister of Finance. It was only after Helpman refused that then Prime Minister Ariel Sharon and Netanyahu offered the job to Fischer.
Helpman's book "The Mystery of Economic Growth" that was published in 2004 by Harvard University (and translated into Hebrew in 2008) is an influence on Netanyahu, who tended to quote it when he was finance minister.
Helpman's refusal - he is considered one of the world's 25 most respected and oft-quoted macroeconomists and he is considered a candidate for a Nobel Prize - has been consistent over the years. The belief is that one reason for his refusal is that he feels that taking up the appointment could ruin his chances of a Nobel Prize. He therefore, according to his friends, prefers to remain in the academic world.
There is also the belief that after Fischer the public is weary of the "personal US import" idea and such a successor would have an even harder and more challenging time than Fischer.
Fischer himself has been heard saying more than once in the past that if Helpman wanted the job, he would be happy to step aside.
In the past few days Netanyahu has been holding talks with senior figures in the world of economics who have been in Israel for Fischer's farewell conference and President Shimon Peres's 90th birthday. These include European Central Bank head Mario Draghi and former US Secretary of the Treasury Larry Summers. Both stressed the importance of a swift appointment to replace Fischer so that there can be a smoother transition before Fischer leaves.
Published by Globes [online], Israel business news - www.globes-online.com - on June 19, 2013
© Copyright of Globes Publisher Itonut (1983) Ltd. 2013
You comment was recieved and soon will be published.
Load more comments
Tax collection rose 15% in February as the deficit fell to 2.7% of GDP.
2013 Knesset record for 'communications': NIS 71,908
Shas MK Avraham Michaeli was top; prime minister and finance minister spent low.
Average salary up slightly in 2013
The average monthly salary rose by only 1.1% after adjustments for purchasing power.
"Home prices driving tech workers overseas"
Leumi deputy CEO Daniel Tsiddon: The rise in home prices in high-tech areas in Israel is costing human capital.
IEC reform talks break down
The stumbling block was the workers' demand for an amnesty on salary excesses.
Flug reopens tussle over financial regulator
The Finance Ministry opposes Flug heading the new committee to supervise the financial system.
Charity begins at home in Israel
Individuals provide 71% of total charitable donations, companies 27%, and estates 2%.
Azrieli to fund Technion Tel Aviv campus
The campus will be called "Technion Campus in Sarona named for Azrieli."
18 Israelis make "Forbes" 2014 Billionaires List
Eyal Ofer is the richest Israeli followed by Idan Ofer and Stef Wertheimer.
BoI: Regional inequality up 84%
The Bank of Israel found the income gap between the center and the periphery is rising sharply.
US removes Israel from IP blacklist
Israel passed new legislation strengthening intellectual property rights on brand drugs.
Stanley Fischer slammed by BoI Governor predecessor
David Klein attributes most of Fischer's mistakes to "the American reality from which he drew much inspiration."
Bank of Israel releases samples of new NIS 50 note
The new NIS 50 banknote is green, bears a picture of the author Shaul Tchernichovsky.
"You can't teach entrepreneurship"
Angel investor Zohar Gilon relies on his own judgement rather than due diligence when selecting investments.
If Rose Fostanes played basketball
Reforms in regulations for foreign caregivers are welcome, but don't go far enough.
Antitrust Authority disappoints on gas competition
The only new company that will compete against Tamar and Leviathan will own less than 8% of Israel's proven gas reserves.
When innovation means a refrigerator
Jamshyd Godrej believes economic development in India must go hand in hand with environmental and social awareness.
Prof. Zvi Eckstein supports NIS 3.30-3.40/$ floor rate
The former deputy Bank of Israel Governor is the first senior figure from the financial system to advocate a floor rate.
2013 boom year for Israeli high-tech
In the first half of the year, there was a 52% rise in demand for mobile and web developers, and salaries are up as well.
Strong shekel forces Israeli manufacturers abroad
Israeli manufacturers tell "Globes" they are losing money due to the current strength of the shekel.
"Ending QE3 will harm the economy"
Prof. Richard Clarida will tell "Globes" Israel Business Conference that the main risk to the US economy is its political system.
Israel offers favorable tax regime for companies
"Globes" and Baker Tilly Israel accountants found Israel's tax benefits are among the most attractive in the West.
Slowdown will worsen
The vested interests that continue to claim that the economy is improving are deceiving the public, says Eyal Horowitz.
Can the US maintain growth after QE3?
Leading economists will discuss "The US: catch 22 the zero interest rate" at the "Globes" 2013 Israel Business Conference.
"The worst could still be ahead in Europe"
Prof. Charles Wyplosz will discuss Eurozone recovery at the Globes Israel Business Conference on December 8-9.
"Let capital pipelines function to full potential"
Amir Bramly argues that limited investment supply is stifling small and medium Israeli companies.
Budget cuts threaten 10,000 defense industry jobs
Senior executives warn many factories are in danger of closing due to the drying up of defense ministry's orders.
Israel faces water surplus
The Water Authority is considering scaling back production at desalination plants.
Global economic trends are disturbing
World trade is not picking up, and only a handful of countries are recovering strongly - but Israel is among them.
Is recovery around the corner?
At the conference on December 8-9, leading experts will examine the prospects for global recovery in 2014.