Some emerging markets complained about “currency wars” and various policies were implemented to stem these inflows, with very mixed success. But at the same time, stronger exchange rates did help to constrain inflationary pressures, allowing monetary policy more freedom to focus on providing some stimulus to the hesitant growth recovery.
The Bank of Israel continues to cooperate fully with the Prime Minister's Office and the Ministry of Finance in discussions devoted entirely to the drafting of the new Bank of Israel Law. This legislation, firmly founded on the principles outlined above, will propel Israel and its economy further along the path towards joining the family of modern countries and economies.