Stanley Fischer z”l

June 1st 2025 – Zambian-born Stanley Fischer, world-famous economist and former Bank of Israel chief, has died at 81.
US-Israeli financier was also Federal Reserve deputy head, was hailed by Financial Times as ‘the most quietly influential person in global economics over the past several decades.
Many of this community knew Stan from his high school days at Milton in Bulawayo and for his membership of Habonim where he developed a strong Zionist connection including trips to Israel as a young man. He was married to Rhoda (Keet) from Bulawayo who passed away a few years ago. ZJC extends heartfelt condolences to their three children and their families.
יהי זכרו ברוך
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Article published in the Times of Israel – 1st June 2025
 
Stanley Fischer, a widely respected economist who served as head of the Bank of Israel for eight years and as vice chairman of the US Federal Reserve for three years, has died at the age of 81, according to Israeli media reports.
 
The US-based Fischer reportedly died surrounded by family members after being ill for the past few years.
 
The renowned financier was the Bank of Israel governor from 2005 to 2013, and successfully navigated the nation through the 2008 financial crisis. He received multiple accolades for his policies and led the Bank of Israel to be ranked first in 2010 among central banks by the International Institute for Management Development for its efficient functioning.
 
Fischer, a dual US and Israeli citizen, served as vice chairman of the US Federal Reserve’s Board of Governors from 2014 to 2017, and before that was the World Bank’s chief economist and the deputy managing director of the International Monetary Fund.
 
In 2023, the Financial Times called him “the pocket-sized colossus of modern central banking” and “the most quietly influential person in global economics over the past several decades.”
 
In 2020-2021, he served on the board of directors of Israel’s Bank Hapoalim Ltd. for eight months, before resigning to spend more time with his family in the United States.
 
 
In this October 17, 2016 photo, Stanley Fischer, vice chairman of the Federal Reserve Board of Governors, speaks to the Economic Club of New York. (AP/Mark Lennihan)
He had taught at MIT and was a distinguished fellow at the Council on Foreign Relations in New York.
 
Fischer was born in 1943 to a Jewish family in Northern Rhodesia (today’s Zambia), and after the family moved to Southern Rhodesia (now Zimbabwe), he became involved in the Habonim Zionist youth movement. He visited Israel in 1960 as part of a youth leaders’ program.
 
He later studied at the London School of Economics and at MIT, moved to the United States and became an American citizen in 1976. He eventually also obtained Israeli citizenship.
 
He had been married to Rhoda Fischer (nee Keet formerly from Bulawayo, Zimbabwe), who died in 2020. He is survived by three children. 
 
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Article published in Israeli online financial website  Calcalist  5.6.25
 
On May 30, 2005, 20 years and a week ago, Prof. Stanley Fischer, the incoming Governor of the Bank of Israel, sat down at the table of the Knesset Finance Committee for his first appearance before the committee members.
Those were calm days. After years of upheaval and a deep economic crisis, there was relative economic stability. We emerged from the severe, double crisis of the beginning of the decade, with the bursting of the dot-com bubble, which sent the entire world into recession, and the second intifada, which only exacerbated the situation here. After the tough economic plans of Finance Ministers Silvan Shalom and Benjamin Netanyahu, we could already see low inflation, low interest rates, foreign investments flowing back in, growth that was picking up, and even the unemployment rate — although still very high, a little less than 10% — began to decline.
And here we have a new governor. The members of the Finance Committee asked to hear him. They invited him to a meeting. When he spoke, after only a month in office, they listened. Not only because of the international aura that Fischer brought to Israel and entered the room with, but also because it was truly a different era.
I don’t want to idealize it, it wasn’t perfect. The chairman of the Finance Committee was Avraham Hirshson, who before the end of the decade would be convicted of a host of white-collar offenses, chief among them theft, and would be sent to prison for more than five years. The disengagement from the Gaza Strip took place that summer, and even before it was implemented, it plunged the political system and the entire country into a vortex whose repercussions are still felt today. The following summer, we were already in the Second Lebanon War. And yet, looking back, there are things we can miss, even in those days, which seemed very turbulent to us at the time. For example, the fact that the government appointed experts and listened to them, that the Knesset valued dedicated public servants and didn’t seek to trample them, and most importantly, that there were people in the public system with a far-reaching vision, people who saw decades ahead, if not entire generations. Fischer was one of the last of them.
These were days when Netanyahu worked for the public, and earned the status, esteem, and respect that allowed him to get people of stature from around the world to work with him for the public.
2 At that first meeting of the Finance Committee, Governor Fischer analyzed the economic situation for its members. Then he moved on to a topic that on any given day would cause most of the public, and most of the Knesset members, to yawn or send them scrolling on their phones: Fischer spoke about replacing the old Bank of Israel law, which was then 50 years old, with a new, modern law.
This is how he began: “Why do we actually need a new Bank of Israel law? Someone even told me, as advice, that I shouldn’t promote a new law for the Bank of Israel. ‘Why?’ I asked him. And he answered me: ‘You shouldn’t, because today you have all the power. You basically decide everything on your own: the interest rate and even which of the goals defined in the law you prefer to work to achieve.'”
Apparently, Fischer’s interlocutor was right. At that time, under the old Bank of Israel Law, the Governor of the Bank of Israel was more powerful. Once a month, after the bank’s top brass presented him with all the economic data and all the forecasts, he would decide alone what the interest rate in the economy would be for the next month. But that’s a thorn in the side, and Fischer wisely recognized this — the Governor’s power comes with a price tag. And the price tag is extraordinary pressure from the political system.
Fischer didn’t have to imagine a situation in which the prime minister and the finance minister would call the governor and try to get him to lower the interest rate; he knew that had already happened. And not even that long ago, right during the time of his predecessor at the bank, Prof. David Klein. At the end of December 2001, after a relentless pressure campaign by then-finance minister Silvan Shalom and then-prime minister Arik Sharon, governor Klein lowered the interest rate by 2% all at once. The finance minister even went so far as to call a joint press conference — the governor, the minister, the prime minister, all together — in which he declared: “I came here to make sure that the interest rate is indeed falling.” Politicians always prefer lower interest rates, because it encourages growth and makes it easier for mortgage holders, but reality doesn’t always align with what’s best for politicians. After Shalom’s celebrations, inflation rose again, and Klein was forced to raise the interest rate again and again and again. Within months, it was back to its previous level.
Fischer was not willing to go through with it even during his term. He understood that he had an opportunity to strengthen the independence of the Bank of Israel, and of its head, for generations to come. The way to do this was twofold: to anchor in law, and not in a norm, the bank’s independence in making decisions on the interest rate; and to free the governor from sole responsibility for setting the interest rate through an entire monetary committee that would do this and reduce the pressure of politicians on a single person.
“The Bank of Israel law is not at all a matter of how much power the governor has, or whether it is convenient for the governor to make decisions himself. The Bank of Israel law is a matter of building a mechanism that will strengthen the central bank and its ability to act in the best interest of the economy and the state,” Fischer explained to the Knesset members. “The existing law is not suitable for a modern central bank (…) According to the existing law, the authority and responsibility for decisions are in the hands of the governor alone. And this is not an optimal situation.”

Stanley Fisher on the Finance Committee

Fisher in his first appearance before the Finance Committee, May 2005. The Knesset asked to hear him – and when he spoke, they listened.
( Photo: Boaz Oppenheim )

Governor Klein with Prime Minister Sharon and Finance Minister Shalom

Governor Klein with Prime Minister Sharon and Finance Minister Shalom. Fisher’s law was designed to prevent pressures like those Sharon and Shalom exerted on Klein
( Photo: GPO )
3 In fact, strengthening the independence of the Bank of Israel within the framework of a new law was one of the main goals Fischer set for himself during his term, and one of the promises he received from then-Finance Minister Netanyahu when he asked him to be appointed to the position in the first place.
Because Fischer didn’t need this role. He was already 61 years old, after a glorious research career and a fine public career. He was the professional guide and mentor of many prominent economists — from Ben Bernanke and Janet Yellen, the heads of the American Federal Reserve; through Mario Draghi, the governor of the European Bank and later the prime minister of Italy; to Olivier Blanchard, the former chief economist of the International Monetary Fund (after Fischer’s death at the weekend, Blanchard tweeted a mesmerizing flow chart in which he showed how broad the extent of Fischer’s professional and personal influence was). Fischer served as the chief economist of the World Bank and a vice president at the International Monetary Fund. He had already enlisted in Israel’s aid once, in 1985, when he played a significant role in formulating the economic stabilization program. Twenty years ago, when Netanyahu approached him, Fisher was vice chairman of Citigroup, one of the world’s largest financial groups at the time. Fisher could have stayed in New York or at his home in Lexington, near Boston. He was close to his family, enjoyed financial prosperity and pleasant weather. He didn’t have to leave everything and come to Israel.
But he wanted to. Both because he was a true Zionist, in the state meaning of that word, before messianic crowns of the complete Land of Israel were attached to it, but also because he saw an opportunity to leave behind a historical legacy.
When Fischer arrived in Israel in early 2005, he did not know that most of his term would be devoted to dealing with the global economic crisis that erupted in 2008. And when the crisis broke out, Fischer was one of the first to respond, not only in Israel but also throughout the world. He led an interest rate policy and other monetary measures (buying government bonds, for example) to deal with the upheaval. Monetary policy is an incredibly boring matter, the vast majority of the public is indifferent to it or unaware of its existence, and it is perfectly fine for it to remain that way, but it must be said: in the midst of the severe economic crisis, Fischer was balanced, calm, helped the government not to panic and to weather the crisis with distinction, despite the change of government at the time. He was, truly, a lighthouse on the shores of a stormy ocean.
In his first term, he had not yet succeeded in passing the Bank of Israel Law, but when Netanyahu offered him a second term, in early 2010, the governor was already more experienced. His condition for another term was to pass the law, without further smears. Netanyahu agreed, and the new Bank of Israel Law was approved by the Knesset in March 2010, the same month that Fischer’s continued term was announced.
Since then, if the government wants to break the independence of the Bank of Israel, it has to change the law. Since then, no matter how many politicians tweet that the Governor of the Bank of Israel is a 0-Molen who is hurting Israel and that he must lower the interest rate, it will not help them. Not only is he independent in making his decisions, he also does not make them alone, but with the other members of the Monetary Committee. They all have to thank Fischer. They, and the entire Israeli public. The independence of the Bank of Israel is an iron principle, and international bodies are also aware of it and appreciate it. We are currently reaping the fruits of this stability, the fruits of the perception that it is better for this independence to be anchored in law and not in a public norm because norms are weakening.
 
4 Fischer did not complete his second term. Homesickness, the fact that he had achieved his main goals, including the Bank of Israel Law, and the new opportunities under the Obama administration took their toll. In all, he completed eight years of Zionist reserve service here. In 2013, he returned to the United States, and a year later he was appointed Vice Chairman of the Fed. There is no need to idealize his time as Israeli governor either. The Prime Minister’s and Finance Ministry’s offices did not stop bashing the Bank of Israel during his time and certainly after him. This is especially true with regard to the bank’s role as the government’s economic advisor, a role that Fischer failed to strengthen properly, or at least not to the same extent as in the matter of monetary policy.
And yet, I miss Fischer, and I actually miss the time. The time when it was still possible to rely a little on social and public norms. The days when Netanyahu worked for the public, and earned the status and appreciation and respect that allowed him to get people of stature from around the world to work with him for the public. The era when not everything went off the rails. The golden age of the new Israeli economy, with a flourishing local high-tech that is climbing the ranks of global industry, with a jump in living standards across all segments of the population, with entry into the OECD, with life in a country that is no longer a developing economy, but already a developed economy. Fischer had many first-mover shares in this process. The Israeli public owes him a lot, even without knowing it.
 
The writer is a journalist for Kahn News  (Channel 11)
 

Source : Haaretz Newspaper

Small town boy from Mazabuka makes good

By Charlotte Halle

When Irene Nathan first heard about the appointment of the new governor of the Bank of Israel, she wondered if it could possibly be the same Stanley Fischer she remembered from her childhood in Zambia.

“As soon as I saw his face on the IBA news, I knew it was him,” says the 64-year-old speaking from her home in Rishon Letzion this week. “Prior to that, the last time I heard his name was when I left Lusaka [in 1963].”

Fischer, whose appointment seemed to shock everyone last month, is frequently described as one of America’s top economists, but those in Israel who remember his childhood in Zambia, where he lived until the age of 13, and his teenage years in nearby Zimbabwe – are quick to point to his Southern African roots.

“I remember him as a little boy,” says Louise Gerber, now of Ramat Gan, but originally from Lusaka, Zambia. “Certainly I felt proud when I realized which family he came from. The Jewish community there was small and very close. Everybody knew everybody.”

According to Ilana Joselowitz, who has roots in both Zambia and Zimbabwe, Fischer’s appointment has been a major talking point at Friday night dinner tables of former Southern Africans around Israel. “The small town boy did good,” she declares with pride. “We are so thrilled, you can’t imagine.”

Norma Davidov (nee Wasserson), who grew up in the Zambian town of Livingstone, close to the Victoria Falls, views Fischer’s appointment as “a nice boost for Northern Rhodesia,” as Zambia was formerly known. “It’s quite something that we’ve produced a governor of the Bank of Israel, especially as there are not too many of us.”

In fact, even in its heyday in the mid 1950s, the Jewish community of Zambia only numbered 1,200 [see box]. Former Zambian Jews are now spread across the globe, notably in South Africa, North America, Australia and the U.K., with a few dozen in Israel.

`A very clever chap’

Fischer, who was born in Mazabuka, Zambia in 1943, moved with his family at the age of 13 to Zimbabwe (then known as Southern Rhodesia), where he became active in the Zionist youth movement Habonim. When he first came to Israel – on the Jewish Agency’s Machon L’Madrichei Chutz L’aretz winter program for youth leaders in 1960 – Davidov says she was one of the few people in Israel he knew and he would visit her and her family on weekends. After studying Hebrew on Kibbutz Maagan Michael, Fischer went to study at the London School of Economics. Davidov recalls that Fischer was away on holiday when he was supposed to receive the results of his final exams, and had arranged for the telegraph carrying his results to be sent to her home in Givatayim. “I doubt if he’d remember, but I remember it because he got so many distinctions,” says Davidov. “He always was a very clever chap.”

While many in Israel have criticized the appointment of a “foreigner” – an American Jew who needs to immigrate here in order to take up the post – none of Fischer’s former compatriots sees it that way. “When a stranger comes and looks in, he might see ways out of our problems that we don’t see,” says Davidov. “I think he’s fully qualified to do the job.”

Despite its close knit past, few former members of the Zambian Jewish community now living in Israel have remained in touch, according to Phina Rosin (n?e Aberman). “There has never been a reunion,” says the former Zambian, who is now a resident of the Beit Protea retirement home in Herzliya. “I don’t know why, there should have been.” Rosin, who clearly remembers Fischer’s father, Latvian-born Philip Fischer from his days as a bachelor, says she has always followed Stanley’s career in the United States from a distance because of the long-standing family connection. “He’s going to be a wonderful asset to Israel,” she adds.

After completing his first and second degrees in London, Fischer earned his doctorate at Massachusetts Institute of Technology (MIT) in Boston in 1969, where he later became a professor and headed the department of economics. In 1988, he became vice president and chief economist of the World Bank and between 1994-2001, he served as the first deputy managing director of the International Monetary Fund before joining Citigroup in 2002 as vice chairman.

“When I first heard [about the appointment],” I thought, `he must be mad,'” says Zambian-born Elise Levin (nee Schlesinger), who is distantly related to Fischer on both his mother and father’s sides. “Look at his wonderful life there and the mess we have here. I think he’s very brave, but then that’s Stanley.”

Also unsurprised by Fischer’s acceptance of the position was Avi Gonen, who knew the economist when the two were youth leaders together in Habonim in Zimbabwe in the late 1950s. The two attended the Machon program in Jerusalem in the winter of 1960, together with Rhoda Keet, Fischer’s girlfriend and later his wife. “I think he’s coming here to fulfill his Zionist dreams, he’s paying his debt to himself,” says Gonen, who was known as Adrian Jones back then.

In a telephone conversation from his home on Kibbutz Ein Hashofet this week, Gonen described Fischer as “very attached to Israel. He originally planned to go to the Hebrew University, he only went [to the U.K.] because he got a scholarship. Now he’s completing the circle by coming back here to take this position.”

Zimbabwean-born Judy Dobkins of Herzliya was also on the same Machon program in 1960. “He had a great sense of humor and he was always one of the crowd,” she says of Fischer. “We always knew he was bright, but he must have been a hell of lot brighter than even we thought he was.”

For more information – see https://en.wikipedia.org/wiki/Stanley_Fischer

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