"The Bank of Israel Law must not be drafted on the basis of a specific, narrow economic approach. The law must allow space for any chosen governor to act according to his own approach and considerations. This is particularly necessary in light of the fact that amendments to the law are intended to provide the infrastructure for the central banks activity for many years and there are great advantages to filling the position of governor with economists with different approaches, which decreased the risk to the economy inherent in a long journey on a given path." The statement is made in a white paper published by the non-profit organization, Senate financed by the German Friedrich Everett fund, which distributes information to members of Knesset and other decision-makers.
The white paper was authored by Dr. Avi Ben-Bassat, former director general of the Ministry of Finance and a former senior official at Bank of Israel, and discusses the current debate concerning the Bank of Israel Law.
Ban-Bassat recommends placing price stability as the central bank's primary goal as it is a target the bank can more easily affect. He also recommends noting in the law that Bank of Israel will also support goals of growth and employment, leaving certain freedom for each governor to act according to his own economic approach.
Ben-Bassat maintains that both the Levin committee draft of the law and the current bill being debated limit the governor's freedom, each using different methods. He states that in order for the bank to attain its goals, its independence must be preserved.
He also advocates adding "ensuring the financial stability of the economy" to the bank's goals.