Karnit Flug served as the ninth governor of the Bank of Israel from 2013 to 2018, holding the distinction of being the first woman to occupy that office. Her tenure followed an extensive career as an economist and central banking official, marked by her navigation of institutional transitions and economic research within the Israeli financial landscape.
Academic Foundation and Early Career
Born in 1955 in Poland, Flug moved to Israel and completed her studies at the Hebrew University of Jerusalem, where she earned a master's degree in economics in 1980. She later secured a Doctor of Philosophy in economics from Columbia University in 1985. Her professional trajectory began in 1984 when she joined the International Monetary Fund. By 1988, she had relocated to Israel to join the Research Department of the Bank of Israel.
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During 1994, Flug took a two-year leave from the central bank to serve as a Senior Research Economist at the Inter-American Development Bank in Washington D.C. Upon her return in 1997, she advanced to deputy director of the Research Department. By June 2001, she attained the position of Department Director and joined the bank's senior management, serving in that capacity for a decade.
The Governorship
In July 2011, Flug was appointed deputy governor of the Bank of Israel upon the recommendation of Stanley Fischer. Following Fischer's resignation in July 2013, she served as Acting Governor. In October 2013, Prime Minister Benjamin Netanyahu nominated her for the permanent role. She was sworn in on November 13, 2013, concluding a period of administrative uncertainty. Global Finance Magazine recognized her performance by awarding her an A grade on three separate occasions in its Central Banker Report Cards.
Economic Research Contributions
Flug maintained a focus on labor market dynamics throughout her career. Notable publications include her 1993 study with Nitsa Kasir and Ofer Gur on the absorption of immigrants into the Israeli labor market, as well as analyses regarding labor costs in industry published in the Economic Review. Further research included investigations into poverty, employment, and the effects of the Single Parent Law, which were published between 1995 and 2006.
Fast facts
- Born: 1955, Poland
- Citizenship: Israel
- Governor of the Bank of Israel: 2013-2018
- Education: Hebrew University of Jerusalem, Columbia University
- Degree: Doctor of Philosophy
- Professional fields: Economist, banker
Questions readers ask
Was Karnit Flug the first woman to lead the Bank of Israel?
Yes, she was the first and, as of her tenure, the only woman to hold the position of governor.
When did she serve as the Governor of the Bank of Israel?
She served as governor from November 2013 until 2018, having previously acted as governor starting in July 2013.
Achievements
- Educated at Hebrew University of Jerusalem and Columbia University
