Karnit Flug: Implementing reform benefitting the public in Israel Remarks by Dr Karnit Flug, Governor of the Bank of Israel, at the Knesset Reforms Committee, Tel Aviv, 14 December 2016.
Fiscal policymakers must wrestle with difficult questions of timing, external conditions, economic potential, and policy credibility. Ultimately, in my view, fiscal consolidation happens either when policymakers choose the path, or it gets chosen for them. The former is preferred. The events in Europe remind us that the latter is likely if policymakers do not act in a timely way.