Governor of the Bank of Israel Prof. Stanley Fischer doubts that economic sanctions against Iran will collapse its economy, although it could have a political impact. In an interview with CNBC, he said that economies don't collapse: "They will continue to go down, but people will find a way to continue to keep economic life going.
"What the political impact of that will be remains to be seen. What happens next depends on how their authorities deal with it," Fischer continued
Fischer believes that the sanctions against Iran will tighten, adding that the Bank of Israel plans for all sorts of eventualities, including a conflict with Iran.
"The sanctions will continue be tightened as long as the Iran program is seen to be proceeding rapidly," said Fischer. "We plan for all sorts of eventualities. Every time you make a plan, including a personal plan, things do not always turn out exactly you plan." He said that the planning process was important. "We do plans, we do scenarios, we do exercises about how the central will work in various situations."
Published by Globes [online], Israel business news - www.globes-online.com - on October 23, 2012
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