Is Israel's credit rating really in danger?
By how much will the plan to lower the prices in the economy reduce our expenses?
And what will happen to real estate prices in 2023? About these and more in the economic podcast of "Israel Today". Podcast guest: Doctor of Economics Alex Komen, senior economic commentator at the Tel Aviv-Yafo Academic College.
"Economics is very much influenced by psychology," explains Komen in response to a question about the connection between Israel's credit rating and the Levin reform and points to the relatively new index in the American stock exchange ESG S&P500, which gathers giant companies that meet the criteria of environmental, social responsibility and corporate governance (Environmental Social and Governance).
Doctor of Economics Alex Komen, photo: none
"If the government passes laws and there are not enough checks and balances - this could harm the economy. For example, Turkey with Erdogan. Turkey is a country with many, many strengths, but Erdogan's control destroyed the Turkish currency, the inflation there is crazy, we see it in Iran as well. Who gives The credit rating asks itself, is the market a free market, that's what they like, that the exchange rates reflect a balance between demand and supply and if you have an initiative, can you develop with it, as opposed to regimes where your hands are tied and things are not so rational. The desire is There should be free competition and part of free competition is that there is a democratic regime where you can do what you want within the framework of the existing regulation."
According to him, "When huge companies like Carrefour or Seven Eleven come here, they do it, among other things, because they know that it is a free market, that laws will not suddenly be passed against them."
Regarding the plan presented a week and a half ago by Prime Minister Netanyahu and Finance Minister Smotritz to lower the price hikes, Komen says: "The plan to lower the price hikes is not baked. Its effect will be 30-40 shekels per month in the citizen's pocket. Those who are in trouble about how to pay their mortgage that has gone up A thousand shekels - that's not what will save him. Elderly people who are debating between medicine and food, these 40 shekels is not what will solve their problem. It's not a solution that will get us water out of the rock."
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