Renowned economist and former Bank of Israel governor Stanley Fischer has died at age 81, according to Hebrew media reports. Fischer’s career spanned the Massachusetts Institute of Technology, the International Monetary Fund and the U.S. Federal Reserve, influencing generations of economists, including Nobel laureate and former Federal Reserve chairman Ben Bernanke.
Fischer (Hebrew name Shlomo Ben Pesach Hacohen) was born in Northern Rhodesia (now Zambia) and grew up in Southern Rhodesia. In his youth, he was active in the Habonim Dror movement, and his connection to Israel remained a constant throughout his life.
His academic career began at the London School of Economics, followed by a doctorate from MIT, where he later became a professor and chaired the economics department. Bernanke was among his students. In the 1980s, Fischer contributed to Israel’s economic stabilization plan as part of an American advisory team.
Fischer held multiple prominent global positions, including deputy managing director of the IMF, chief economist of the World Bank and vice chairman of Citigroup.
In May 2005, Fischer moved to Israel to lead the Bank of Israel, remaining in the position for eight years. During his tenure, a new law broadened the governor’s authority, a change Knesset member Shelly Yachimovich said was designed around Fischer’s exceptional leadership. Both Global Finance and Euromoney named him among the world’s top central bank governors, and in 2013 he was awarded the Herzog Prize for his contributions to Israel.
Amid the eurozone crisis, Fischer cautioned that Israel’s economy faced potential challenges, but commended the fiscal discipline of then-Israeli premier Benjamin Netanyahu and finance minister Yuval Steinitz. “They will enable us to manage the economy in a way that supports continued growth,” he stated. In 2011, he sought the role of IMF chairman, but was ruled ineligible due to age limits.
After leaving Israel, Fischer served as vice chairman of the Federal Reserve under Janet Yellen from 2014 to 2017. He briefly joined Bank Hapoalim as a director, stepping down in June 2021 for personal reasons.
Fischer lived in Herzliya. His wife, Rhoda Fischer, whom he met in the youth movement, died in 2020. He later formed a relationship with Dr. Anna Krassiko-Trev. His three sons reside in the United States: Michael Fischer is a doctor, David Fischer was vice president of marketing at Facebook and Jonathan Fischer leads the production company Groundswell.
“I was deeply saddened to hear of the passing of the former governor of the Bank of Israel, Professor Stanley Fischer, of blessed memory,” said Prime Minister Benjamin Netanyahu on Sunday.
“Stanley was a great Zionist who made a remarkable move—a man of international stature who left everything, made aliyah, and accepted the role of governor that I offered him,” stated Netanyahu. “He was also an outstanding economist. In his role as governor, he contributed greatly to the Israeli economy, particularly in restoring stability during the global financial crisis.”
“Over the years, Stanley proudly represented Israel on the world stage in a series of senior roles in both the American and global economies, advancing Israel’s good name and its economy,” added the premier.
Israeli President Isaac Herzog eulogized Fischer as “one of the greatest Governors the Bank of Israel has ever known” in an X post on Sunday.
“He played a huge role in strengthening Israel’s economy, its remarkable resilience, and its strong reputation around the world. He was a world-class professional, a man of integrity, with a heart of gold. A true lover of peace. A dear friend we will never forget,” the head of state tweeted.
Originally published by Israel Hayom.