Israel's Prime Minister Benjamin Netanyahu and Finance Minister Yair Lapid have nominated Jacob Frenkel to replace Stanley Fischer as the next governor of the Bank of Israel. Frenkel served two terms in that position from 1991 to 2000 and was known for being a tough inflation fighter.
But the global economy has changed dramatically since then, and so has Israel's.
"Frenkel will be judged by his ability to maintain continuity on transparency ... and policy goals" set by Fischer, said Zach Herzog, head of international sales at Psagot, Israel's biggest brokerage firm.
Before Frenkel moves in to the big office at the Bank of Israel, he must be approved by a special committee but that's expected to go smoothly.
As for Fischer, his influence extends far beyond the halls of power in Jerusalem and Tel Aviv's financial district.
Fischer taught two of the world's most powerful financial minds. Fischer advised Fed Chairman Ben Bernanke in his doctoral thesis at the Massachusetts Institute of Technology in the late 1970s. The paper was titled "Long Term Commitments, Dynamic Optimization and the Business Cycle." In the opening paragraph, young Bernanke thanked MIT's staff writing. "Deserving of special mention is my advisor, Stanley Fischer. Professor Fischer carefully read numerous drafts of my papers, annotating them with many excellent suggestions. His advice and encouragement throughout my entire graduate education is gratefully acknowledged."
Like Bernanke, while heading Israel's central bank Fischer was known for closely tracking how his policies would impact the Israeli employment landscape. Zack Miller, general partner at the Israeli venture capital fund OurCrowd, said: "Fischer lowered interest rates pretty aggressively when the global economy started dipping and was forced to fight the effects of a strong shekel over the past few years." Psagot's Herzog calls it "enlightened interventionism."