Ari Shavit's upcoming book My Promised Land: The Triumph and Tragedy of Israel includes an account of an interview with the governor of the Bank of Israel, Stanley Fischer, that may be of interest to FutureOfCapitalism readers and of relevance to the American economy. From the book:
In the years 2003 to 2008, Israel's annual growth rate was 5.2 percent. While the world was in crisis in 2010-11, Israel's annual growth rate was 4.7 percent....Fischer tells me there are four reasons for this success: reducing government spending dramatically (from 51 percent of GDP in 2002 to 42 percent in 2011); reducing the national debt significantly (from 100 percent of GDP in 2002 to 76 percent in 2011); maintaining a conservative and responsible financial system; and fostering the conditions required for Israeli high-tech to continue to flourish.