Israel’s Wartime Economy: Navigating Crisis and Beyond
The past 11 months have pushed Israel’s economic resilience to the limit. David Makovsky is joined by former Bank of Israel governor Karnit Flug to discuss.
Listen here:
Since October 7th, Israel has been grappling with the immense economic toll of a prolonged, multi-front war. While the country’s economy has weathered crises before, the past 11 months have pushed its resilience to the limit. Soaring military expenditures, plummeting tourism, and the costs of compensating reserve soldiers and displaced citizens have all taken a toll on economic growth. How much of this turbulence stems from the war itself, and to what extent have policy missteps worsened the situation? More importantly, what does the path to economic recovery look like?
In this episode of Decision Points, David Makovsky is joined by Karnit Flug, Vice President of Research at the Israel Democracy Institute and former Governor of the Bank of Israel. Karnit led the central bank from 2013 to 2018, earning recognition as one of the world’s top central bankers. Together, they discuss Israel’s wartime economy, the challenges ahead, and the resilience of the Israeli people.
Decision Points is a Washington Institute podcast on key moments in Israel’s history and present. The first season focused on the history of U.S.-Israel relations, the second season examined key Israeli and Arab leaders, the third season explored Israel’s contemporary policy dilemmas, and the fourth season highlighted books essential to understanding Zionism and U.S.-Israel relations. Season 5 of the podcast dives into the Gaza war and explores the long-term implications for Israel, U.S.-Israel relations, and the Middle East. In each episode, distinguished scholars, analysts, journalists, and officials will put the current conflict in perspective and discuss the road ahead.
The host, David Makovsky, is the Ziegler Distinguished Fellow at the Washington Institute for Near East Policy and Director of its Koret Project on Arab-Israel Relations. He is a former senior advisor to the U.S. Special Envoy for Israeli-Palestinian Negotiations, as well as a sought-after expert on U.S.-Israel diplomatic relations and the Israeli-Palestinian conflict.
Decision Points is both a history lesson and an exploration of contemporary policy decisions impacting Israel, the United States, and the broader Middle East.
Subscribe to “Decision Points” on Apple Podcasts, Spotify, Youtube, or wherever you listen.