Jan. 27 - Bank of Israel Governor, Stanley Fischer, speaks to Insider at Davos 2012
We'll just before I spoke to mr. Gloria Bank of Israel governor Stanley Fisher sounded. A little more upbeat about recent policy decisions around the prospects of recovery. By I think the actions of the political leaders and of the Central Bank in the lowest two months change that dynamic. Just -- joining me to do more. We may have to that as long as and the motive reacting rapidly. Probably do it there may be a big issue at the end of weather in the end they'll have to. -- supporting he did to various countries and that as we know is is you going to be crucial if it were to get. Are you are you personally impressed with the way the ECB has handled this. Yes I think. Jon Claude trichet was very much on his own without political support for a long time. Did it did very well and then in October November the politicians go to onboard. And Mario very you have made a big move forward. You of course have firsthand experience from Brazil. Agreed to folds of of some sort of seen as inevitable how hopes would that best be managed in your view. Well it needs to be managed corporate give me and that'll be the the big issue -- incorporate degrees in the sense that everyone understands in the end they have to make an agreement. To do it the other way is. Is very dangerous and we've seen that for instance in Argentina. Which ten years later is still not back in the markets. Are you confident that we will see the cooperation. Need to it's. To achieve that in the event of default. Pretty confident so but things happen I don't think -- in this time that you cart rule him out. How worried are you that Greece. If and when this happens we'll set a precedent that Italy and Portugal are likely to follow it. I don't wanna get into these very complicated hypothetical. Issues. Good -- on the list finds a way of avoiding the default in the and that issue were to rise. It's what the market Smart about it right. Well it's good to be worried about it we should be worded -- it could have serious consequences. -- the IMF said last week he it'll lead to resonance 600 billion. Now -- going back to your experiences as deputy MD that what what what does that what do you think is the global. Politico. And and banking. And appetites. To stump public that those sort of funds. There's there's a reluctance. And there are discussions about what conditions should be imposed and so forth and whether you get exactly 21 trillion dollars. Is unclear but I'm sure there's going to be a lot of support nobody wants the financial crisis. That might result if they didn't provide. A reasonable amount of finance it pretty close to that number. Do you do you share the pessimism that we heard from the IMF managing the World Bank. Over the past couple of days in terms of the -- full costs. I was a little surprised. But there's certainly no far from. What seems plausible and when you read their reports they are good enough to -- you. I I -- finish up with. A question on Israel of course we had a surprise quarter point -- Monday. Come to what extent does another can't depend on the situation here in Europe. Well what do we look at the global situation could obviously what happens in Europe is is critical. We're sort of understand that -- can have very slow growth of probe near recession. Hopefully a mild one this year. The issue is whether they'll be a financial. Crisis or -- and the probability of that -- declined. Significantly. So Brazil and -- account and Israel has declined. Well we also have to form our own economy and watch what happens there and what happens to them -- -- into production in Israel so that would be another important -- Factory in fact.