Overall, the ability of producers, consumers, and investors to shift purchases and resources provides rapid feedback on perceptions of policy--and not only in the monetary sphere. The need to compete for business in a globalized economy has quite likely raised the efficiency and flexibility of economic systems as well as reinforcing the requirement for noninflationary monetary policies.
This concern has already been reflected in the price of bank shares in Israel. Nevertheless, Israel’s economy has reached this situation in a good condition: GDP has grown at good rates in the last several quarters, and unemployment is at its lowest level in about 30 years.