is, and granted independence to their central banks. there is a vast amount of research showing that an economy performs better when the central bank is independent. central bank independence is thus important for the achievement of sustainable growth, price stability, and financial stability. hence, central bank independence is one of the considerations of domestic and foreign investors in deciding where to invest. this consideration is expressed, among other things, in the country's rating and in the costs incurred by the government and the private sector in raising capital. it is also important that the independence of the central bank be accompanied by fruitful cooperation between it and the government, including the ministry of finance. on this point i would like to mention the excellent cooperation between the minister of finance and me, and between the senior personnel in the ministry of finance and the bank. the modern approach to central bank independence is expressed in the laws relating to modern central banks in advanced countries worldwide. this is also the approach underlying the new bank of israel bill which we are drafting in conjunction with the ministry of finance and with the support of the prime minister. this law will comply with the accepted standards of central banks in advanced countries, and will also, and mainly, serve the economy, the state and its citizens in the best possible way. i hope that the government will present the new bill to the knesset in the very near future. this will be a further milestone in building the foundations of an advanced and modern economy in israel. that will be an achievement the state of israel and its citizens can be proud of as the country celebrates its 60th anniversary.

stanley fischer : a salute to the country on its 60th birthday address by professor stanley fischer, governor of the bank of israel, to the forbes conference, ramat gan, 14 april 2008. * * * in my remarks today, i would like to speak about the special period the israeli economy is currently passing through and what is required from policymakers and the business sector to get through this period of the slowdown in global growth relatively unscathed. the israeli economy is presently confronting a very complex situation. the western world, and especially the united states, is in the throes of a serious financial crisis, which is causing a significant slowdown in growth in the united states, and hence also in europe, and a decrease in the volume of world trade. the israeli economy will also certainly be affected by the slowdown in global growth. this will probably come from two directions : a ) through the influence of the financial markets. even though the financial crisis hardly touched the israeli financial system, it is having an impact. this is seen in price falls in the share market and a rise in the risk premium on the bond market. we can thus expect a reduction in consumer demand due to the “ wealth effect ” – the effect of a fall in the value of households ’ assets on their purchases – and a decline in real investments resulting from the increase in firms'costs of borrowing in the capital market. b ) through the slowdown in israeli exports, in the context of the decrease in worldwide demand, particularly in the united states, and the strengthening of the shekel against the dollar. taking the above into account, the bank of israel's forecast of the rate of growth in 2008 is 3. 2 percent. although this is lower than the rate we have been accustomed to since the middle of 2003, it is similar to the average growth rate recorded in israel over the past 25 years, and is higher than that expected in the developed countries – particularly the united states and europe. in other words, the bank ’ s forecast, in line with that of nearly all forecasters, is that israel ’ s economy will continue to grow at a good pace, despite the difficult times in which the advanced economies find themselves. the question thus arises what the policymakers – i. e., the government, especially the ministry of finance, and the bank of israel – and the business sector should be doing to minimize the harm to the economy. we should emphasize that whatever is done has to be consistent with