Michael Bruno, the newly appointed Governor of the Bank of Israel, warned the government last week not to raise wages if it wants to preserve economic stability.
Bruno, a leading economist credited with devising the government’s present economic austerity program, spoke at the annual meeting here of the Jewish Agency Assembly. He said wage hikes would result in further devaluation of the Shekel that would in turn renew the inflationary spiral.
He also recommended that the government trim the budget further. “This time a substantive cut would not mean imposing new taxes,” he said.
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The Archive of the Jewish Telegraphic Agency includes articles published from 1923 to 2008. Archive stories reflect the journalistic standards and practices of the time they were published.
