The following are the most important aspects: First, the new law that we in the Bank of Israel propose clearly defines the independence required for a central bank, similar to the situation in other developed countries, but it is apparent to us that independence must go hand-in-hand with responsibility.
Because aggressive fiscal measures adopted after the Lehman shock left many issues unresolved – such as excessive capital stock and an overheating in the real estate market – China’s previous administration had remained cautious about public spending despite a decelerating economy. The current administration also appears to be maintaining a cautious stance.