of course, important to enable and promote innovation and competition, but as i have emphasized throughout this discussion, it is no less important to avoid taking stability for granted. there is tremendous value to overall well - being from a policy that stabilizes volatility and uncertainty in the short term, the medium term and the long term, and certainly when volatility increases to the point of a financial crisis. in recent weeks that has been an increase in uncertainty in israel. while the financial markets have so far not been tremendously agitated by it, we cannot assume that there is no damage, and it is clear that we must deal with it and that this is a challenging period. in order to prevent harm to the economy, all policy makers and public officials must act responsibly and do all that they can in order to reinstill certainty and fiscal responsibility soon after the elections. 4 / 4 bis central bankers'speeches

yaron amir : are we again taking financial stability for granted? ( or : do we need central banks? ) speech by mr yaron amir, governor of the bank of israel, at the israel economic association conference at the hebrew university of jerusalem, jerusalem, 6 june 2019. * * * " in recent weeks that has been an increase in uncertainty in israel. while the financial markets have so far not been tremendously agitated by it, we cannot assume that there is no damage, and it is clear that we must deal with it and that this is a challenging period. in order to prevent harm to the economy, all policy makers and public officials must act responsibly and do all that they can in order to reinstill certainty and fiscal responsibility soon after the elections. " summary : the volatility in consumption and income may, under certain circumstances, have a significant negative impact on well - being, such that the central banks ’ stabilizing policies may be very valuable. the volatility may have an impact on the path of growth, such that the stabilizing policies also have an impact on growth. there is “ bad ” uncertainty, because of which we must guard stability, but there is also “ good ” uncertainty. we must maintain stability while enabling that good uncertainty, which is reflected in innovation and technological improvements, research and development, and competition. the stabilizing policy is particularly important to prevent financial crises, since the damage from such crises is significant. therefore, the financial stability committee becomes all the more important as a vital layer in the early identification of risks. the establishment of the committee is a very important step in view of the reforms in the financial system that are being formulated. the bank of israel advises the government on how to increase the long - term growth rate, and indicates main policy measures that can increase the long - term growth path : in the areas of education, infrastructure, and bureaucracy. the bank is currently working diligently on a formal report containing the bank ’ s recommendations to the government regarding the advancement of productivity in the economy and an analysis of their expected costs and benefits in the long term, which we will publish soon. * * * i chose to deal today with this question, because i think that this conference is the proper platform for such a discussion, which combines economic theory, policy measures, and the current public discourse in israel, a decade after the global financial crisis. there is a model by a very famous economist behind this question