Karnit Flug Named Among Top Central Bankers

The Bank of Israel head office in Yerushalayim. (Flash90)
The Bank of Israel’s head office in Yerushalayim. (Flash90)

Karnit Flug is one of the best central bank governors in the world, according to Global Finance magazine, an industry publication which issues an annual list of the most effective top executives in the banking business. Flug is one of eight central bankers, of a total of 75, who received an A rating from the magazine for her management of Israel’s economy.

The Central Banker Report Card, according to the magazine, grades the central bank governors of nearly 75 key countries (and the European Union) on an “A” to “F” scale for success in areas such as inflation control, economic growth goals, currency stability and interest rate management. (“A” represents an excellent performance down through “F” for outright failure.) The list has been issued annually since 1984.

Along with Flug, the top central bankers included those in Lebanon, Paraguay, Peru, Philippines, Russia, Taiwan, and United Kingdom. Janet Yellen, chairperson of the Federal Reserve, received an A-. The large majority of European central bank heads rated no better than a B, as did the heads of many Arab central banks. Tarek Amer, chairman of the Egyptian central bank, rated a C, in light of the many troubles the Egyptian economy is experiencing. There was only one F issued – awarded to Nelson Merentes, head of the Venezuelan central bank.

According to Global Finance publisher and editorial director Joseph Giarraputo, central bankers today are tackling unprecedented challenges from political upheavals and low commodity prices as well as employment rates that remain weak despite record low interest rates. Wise monetary policy can mitigate the negative impacts of political and economic change, but requires stiff resolve to navigate competing interests and visions. As these scores demonstrate, some central bankers are more constrained by circumstance than others, while some have shown remarkable agility in driving policy.”

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