Karnit Flug: The macroeconomic situation and the stability of the financial system Main points of address by Dr Karnit Flug, Governor of the Bank of Israel, at TheMarker Financial Conference, Tel-Aviv, 4 March 2014. *  *  *  Accompanying slides can be found in the Hebrew version of the speech on the Bank of Israel’s website.
Following Asdrubali, Sørensen and Yosha (1996) and the modification of Mélitz (2004), it might be helpful not to stop here but to have a further look at the individual components of GDP and the respective channels of risk sharing. 3  3  Asdrubali, P., B. Sørensen and O. Yosha (1996), Channels of Inter-state Risk-sharing: United States 19631990, Quarterly Journal of Economics, Vol.