Stanley Fischer

Stanley Fischer (Hebrew: סטנלי פישר‎; born October 15, 1943) is an Israeli American economist and former vice chairman of the Federal Reserve. Born in Northern Rhodesia (now Zambia), he holds dual citizenship in Israel and the United States.[17] He served as governor of the Bank of Israel from 2005 to 2013. He previously served as chief economist at the World Bank.[18] On January 10, 2014, United States President Barack Obama nominated Fischer to be Vice-Chairman of the US Federal Reserve Board of Governors. On September 6, 2017, Stanley Fischer announced that he was resigning as Vice-Chairman for personal reasons effective October 13, 2017.[19]

Not to be confused with Stanley Fisher.
Stanley Fischer
Vice Chairman of the Federal Reserve
In office
June 16, 2014 – October 13, 2017
PresidentBarack Obama
Donald Trump
Preceded byJanet Yellen
Succeeded byRichard Clarida
Member of the Board of Governors of the Federal Reserve
In office
May 21, 2014 – October 13, 2017
Nominated byBarack Obama
Preceded byBen Bernanke
Succeeded byMichelle Bowman
Governor of the Bank of Israel
In office
May 1, 2005 – June 30, 2013
Prime MinisterAriel Sharon
Ehud Olmert
Benjamin Netanyahu
Preceded byDavid Klein
Succeeded byKarnit Flug
First Deputy Managing Director of the International Monetary Fund
In office
September 1, 1994 – August 31, 2001
DirectorMichel Camdessus
Horst Köhler
Preceded byPosition established
Succeeded byAnn Krueger
Chief Economist of the World Bank
In office
January 1988 – August 1990
PresidentBarber Conable
Preceded byAnn Krueger
Succeeded byLarry Summers
Personal details
Born (1943-10-15) October 15, 1943
Mazabuka, Northern Rhodesia (now Zambia)
EducationLondon School of Economics (BS, MS)
Massachusetts Institute of Technology (PhD)
Signature
Academic career
FieldMacroeconomics
School or
tradition		New Keynesian economics
Doctoral
advisor		Franklin M. Fisher[1]
Doctoral
students		Zvi Bodie[2]
Isher Judge Ahluwalia[3]
Frederic Mishkin[4]
Steven M. Sheffrin[5]
Olivier Blanchard[6]
Ben Bernanke[7]
David Hsieh[8]
Kenneth D. West[9]
Greg Mankiw[10]
Jeffrey Miron[11]
Mark Bils[12]
David Romer[13]
Ricardo J. Caballero[14]
D. Nathan Sheets[15]
Ilan Goldfajn[16]

Biography

Stanley (Shlomo) Fischer was born into a Jewish family in Mazabuka, Northern Rhodesia (now Zambia). When he was 13, his family moved to Southern Rhodesia (now Zimbabwe), where he became active in the Habonim Zionist youth movement. In 1960, he visited Israel as part of a winter program for youth leaders, and studied Hebrew at kibbutz Ma'agan Michael. He had originally planned to study at the Hebrew University of Jerusalem, but went to the United Kingdom to study after receiving a scholarship from the London School of Economics, and obtained his B.Sc. and M.Sc. in economics from 1962 to 1966. Fischer then moved to the United States to study at MIT, and earned a Ph.D. in economics in 1969 with a thesis titled Essays on assets and contingent commodities written under the supervision of Franklin M. Fisher.[20][21] He became an American citizen in 1976.

Fischer is married to Rhoda Fischer (née Keet), whom he met during his days in Habonim. The couple has three children. When they moved to Israel, Rhoda became honorary president of Aleh Negev, a rehabilitation village for the disabled.

Academic career

In the early 1970s, Fischer worked as an associate professor at the University of Chicago. He served as a professor at the MIT Department of Economics from 1977 to 1988.

In 1977, Fischer wrote the paper "Long-Term Contracts, Rational Expectations, and the Optimal Money Supply Rule"[22] where he combined the idea of rational expectations argued by New classical economists like Robert Lucas with the idea that price stickiness still led to some degree of market shortcomings that an active monetary policy could help mitigate in times of economic downturns. The paper made Fischer a central figure in New Keynesian economics.[23][24] Through this critique of new classical macroeconomics Fischer significantly contributed to clarifying the limits of the policy-ineffectiveness proposition.[25]

He authored three popular economics textbooks, Macroeconomics (with Rüdiger Dornbusch and Richard Startz), Lectures on Macroeconomics (with Olivier Blanchard), and the introductory Economics, with David Begg and Rüdiger Dornbusch. He was also Ben Bernanke's, Mario Draghi's and Greg Mankiw's Ph.D. thesis advisor.[26]

In 2012, Fischer served as Humanitas Visiting Professor in Economic Thought at the University of Oxford.[27]

Banking career
Stanley Fischer at 2000 in International Monetary Fund

From January 1988 to August 1990 he was Vice President, Development Economics and Chief Economist at the World Bank. He then became the First Deputy Managing Director of the International Monetary Fund (IMF), from September 1994 until the end of August 2001. By the end of 2001, Fischer had joined the influential Washington-based financial advisory body, the Group of Thirty. After leaving the IMF, he served as Vice Chairman of Citigroup, President of Citigroup International, and Head of the Public Sector Client Group. Fischer was an executive at Citigroup from February 2002 to April 2005, earning millions of dollars in salary and stock.[28]

Bank of Israel

Fischer was appointed Governor of the Bank of Israel in January 2005 by the Israeli cabinet, after being recommended by Prime Minister Ariel Sharon and Finance Minister Benjamin Netanyahu. He took the position on May 1, 2005, replacing David Klein, who ended his term on January 16, 2005. Fischer became an Israeli citizen but did not renounce U.S. citizenship.[29][30][31]

He had been involved in the past with the Bank of Israel, having served as an American government adviser to Israel's economic stabilization program in 1985. On May 2, 2010, Fischer was sworn in for a second term.[32]

Fischer during the WEF 2010

Under his management, in 2010, the Bank of Israel was ranked first among central banks for its efficient functioning, according to IMD's World Competitiveness Yearbook.[33]

Fischer has earned plaudits across the board for his handling of the Israeli economy in the aftermath of the global financial crisis. In September 2009, the Bank of Israel was the first bank in the developed world to raise its interest rates.[34]

In 2009, 2010, 2011 and 2012 Fischer received an "A" rating on the Central Banker Report Card published by Global Finance magazine.[35][36]

In June 2011, Fischer applied for the post of IMF managing director to replace Dominique Strauss-Kahn, but was barred as the IMF stipulates that a new managing director must be no older than 65, and he was 67 at the time.[37]

On June 30, 2013, Fischer stepped down as governor of the Bank of Israel midway through his second term,[38] despite high popularity.[39]

U.S. Federal Reserve

American President Barack Obama nominated Fischer as vice chair of the Federal Reserve System, the United States' central bank, in January 2014. In nominating Fischer for the position, Obama stated he brought decades of leadership and expertise from various roles, including serving at the International Monetary Fund and the Bank of Israel.[40]

On May 21, 2014, the Senate confirmed Fischer's appointment to the Federal Reserve Board of Governors.[41] In a separate vote on June 12, he was confirmed as the vice chair.[41] Fischer succeeded Janet Yellen as vice chair; Yellen became chair of the Federal Reserve earlier in 2014. Fischer resigned for personal reasons in mid-October, 2017, 8 months before the June, 2018, expiry of his term as vice chair.[42][43]

Awards and recognition

Fischer received an honorary doctorate from Hebrew University in 2006.[44] In October 2010, Fischer was declared Central Bank Governor of the Year by Euromoney magazine.[45]

He is a member of the Bilderberg Group and attended its conferences in 1996, 1998 and 1999. Apparently he also attended the Bilderberg conference in 2011 in St. Moritz, Switzerland.[46] However, his name does not show up on the list of participants for the year 2011 as of March 2016. He is also a Distinguished Fellow in the Council on Foreign Relations (CFR). Fischer was named a Distinguished Fellow of the American Economic Association in 2013. He is also a member of the Inter-American Dialogue.[47]

References
  1. Fisher, Stanley (1969). Essays on assets and contingent commodities (Ph.D.). MIT. hdl:1721.1/13873. Retrieved 25 May 2017.
  2. Bodie, Zvi (1975). Hedging against inflation (Ph.D.). MIT. Retrieved 23 May 2017.
  3. Ahluwalia, Isher Judge (1976). A macro-econometric model of the Indian economy analyzing inflation during 1951-1973 (Ph.D.). MIT. Retrieved 30 May 2017.
  4. Mishkin, Frederic Stanley (1976). Illiquidity, the demand for consumer durables, and monetary policy (Ph.D.). MIT. Retrieved 24 May 2017.
  5. Sheffrin, Steven M. (1976). Rational expectations and employment fluctuations (Ph.D.). MIT. Retrieved 31 May 2017.
  6. Blanchard, Olivier (1977). Two essays on economic fluctuations (Ph.D.). MIT. Retrieved 1 February 2017.
  7. Bernanke, Ben (1979). Long-term commitments, dynamic optimization, and the business cycle (PDF) (PhD). Massachusetts Institute of Technology. Retrieved 23 October 2016.
  8. Hsieh, David Arthur (1981). Expectations and efficiencies in international markets (Ph.D.). MIT. Retrieved 27 May 2017.
  9. West, Kenneth D. (1983). Inventory models and backlog costs : an empirical investigation (PDF) (Ph.D.). MIT. Retrieved 16 March 2017.
  10. "A Profile of Stanley Fischer". GREG MANKIW'S BLOG. September 19, 2016.
  11. Miron, Jeffrey Alan (1984). The economics of seasonal time series (Ph.D.). MIT. Retrieved 27 May 2017.
  12. Bils, Mark (1985). Essays on the cyclical behavior of cost and price (Ph.D.). MIT. Retrieved 27 May 2017.
  13. Romer, David (1985). General equilibrium analysis of government financial policies (Ph.D.). MIT. Retrieved 24 May 2017.
  14. Caballero, Ricardo J. (1988). The Stochastic Behavior of Consumption and Savings (PDF) (Ph.D.). MIT. Retrieved 17 October 2016.
  15. Sheets, D. Nathan (1993). Essays in intersectoral economics: exchange rates, public capital and productivity (Ph.D.). MIT. hdl:1721.1/12708. Retrieved 27 May 2017.
  16. Goldfajn, Ilan (1995). On public debt and exchange rates (Ph.D.). MIT. hdl:1721.1/11082. Retrieved 25 May 2017.
  17. Stanley Fischer firms as top choice to become US Fed vice, The Sydney Morning Herald, via Bloomberg News, December 12, 2013.
  18. Ewing, Jack (12 June 2011). "Bank of Israel Chief Enters Race to Lead I.M.F". The New York Times.
  19. "Stanley Fischer submits resignation as a member of the Board of Governors, effective on or around October 13, 2017". Board of Governors of the Federal Reserve System. Retrieved 2017-09-06.
  20. Fischer, Stanley (1969). "Essays on assets and contingent commodities". DSpace@MIT. hdl:1721.1/13873. Cite journal requires |journal= (help)
  21. Stanley Fischer at the Mathematics Genealogy Project
  22. Stanley Fischer (1977) Long-Term Contracts, Rational Expectations, and the Optimal Money Supply Rule Journal of Political Economy.
  23. Binyamim Appelbaum (December 12, 2013) Young Stanley Fischer and the Keynesian Counterrevolution New York Times. Retrieved 15 December 2014
  24. Dylan Matthews (January 13, 2014) Stanley Fischer saved Israel from the Great Recession. Now Janet Yellen wants him to help save the U.S. Washington Post. Retrieved January 15, 2014
  25. Galbács, Peter (2015). The Theory of New Classical Macroeconomics. A Positive Critique. Contributions to Economics. Heidelberg/New York/Dordrecht/London: Springer. doi:10.1007/978-3-319-17578-2. ISBN 978-3-319-17578-2.
  26. "Good News". Greg Mankiw's Blog. 18 May 2011.
  27. "Humanitas Visiting Professorship in Economic Thought" Archived 2013-05-12 at the Wayback Machine, Institute for Strategic Thought, University of Oxford, 5–6 November 2012.
  28. "Stanley Fischer, Fed Nominee, Has Long History of Policy Leadership", New York Times, March 12, 2014.
  29. Mitnick, Joshua (13 June 2011). "Israel's Stanley Fischer Announces Bid to Head the IMF". Wall Street Journal. Retrieved 30 December 2012.
  30. Odenheimer, Alisa (12 June 2011). "Fischer's Age, Nationality Are Hurdles in Bid for IMF Post". Bloomberg News. Retrieved 30 December 2012.
  31. Klein, Zeev (19 January 2005). "Bach c'tee approves Fischer". Globes. Retrieved 30 December 2012.
  32. Filut, Adrian (2 May 2010). "Stanley Fischer sworn in for second term". Globes. Retrieved 2 May 2010.
  33. Viniar, Olga (20 May 2010). "Israel's economy most durable in face of crises". ynetnews.com. Retrieved 23 October 2010.
  34. Levy, Tal; Bassok, Moti (25 August 2009). "Israel central bank first in developed world to raise interest". Haaretz. Retrieved 23 October 2010.
  35. "World's Top Central Bankers 2009". Global Finance. 28 September 2010. Retrieved 23 October 2010.
  36. "Global Finance Magazine names the World's Top Central Bankers 2010". Global Finance. 9 September 2010. Retrieved 23 October 2010.
  37. Wroughton, Lesley (13 June 2011). "Lagarde, Carstens shortlisted for IMF race-officials". Reuters.
  38. "Stanley Fischer to step down as BOI chief". Ynet News. 29 January 2013. Retrieved 30 January 2013.
  39. Dylan Matthews (15 February 2013). "Stan Fischer saved Israel's economy. Can he save America's?". Washington Post.
  40. AP, Reuters. "Obama Nominates Former Bank of Israel Chief Stanley Fischer as Fed Vice Chairman". Ha'aretz. Retrieved 6 January 2018.
  41. Puzzanghera, Jim (June 12, 2014). "Senate confirms Brainard, Powell for Fed seats, Fischer as vice chair". The Los Angeles Times.
  42. Liesman, Steve (2017-12-21). "Larry Lindsey being considered for Fed vice chair job: Sources". CNBC. Retrieved 6 January 2018.
  43. Reuters. "Stanley Fischer Quits No. 2 Post At Federal Reserve". Forward Magazine. Retrieved 6 January 2018.
  44. "Stanley Fischer: The Israeli economy" (PDF). bis.org. Retrieved 23 October 2010.
  45. "Central bank governor of the year 2010: Stanley Fischer's bold moves show the value of experience". Euromoney. October 2010.
  46. "Bilderberg 2011 list of participants". BilderbergMeetings.org. Archived from the original on August 28, 2011. Retrieved August 24, 2011.
  47. "Inter-American Dialogue | Experts". www.thedialogue.org. Retrieved 2017-04-11.
Articles
Diplomatic posts
Preceded by
Ann Krueger		 Chief Economist of the World Bank
1988–1990		 Succeeded by
Larry Summers
New office First Deputy Managing Director of the International Monetary Fund
1994–2001		 Succeeded by
Ann Krueger
Government offices
Preceded by
David Klein		 Governor of the Bank of Israel
2005–2013		 Succeeded by
Karnit Flug
Preceded by
Janet Yellen		 Vice Chairman of the Federal Reserve
2014–2017		 Succeeded by
Richard Clarida
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