The outbreak of the crisis and its spillover to the entire world reflect the inherent vulnerabilities and systemic risks in the existing international monetary system. Issuing countries of reserve currencies are constantly confronted with the dilemma between achieving their domestic monetary policy goals and meeting other countries’ demand for reserve currencies.
This is a different picture than what other countries are experiencing, and an indication that the labor market is showing relative robustness, as is also reflected in an international comparison of unemployment rates. Bank of Israel policy acts to achieve the Bank of Israel’s objectives as defined by law.