Stanley Fischer, Influential Economist, Former Bank of Israel Chief, Dies at 81
Stanley Fischer, a globally renowned economist who played a central role in shaping Israel’s financial stability and policy credibility, died Saturday in the United States at age 81 after a long illness. Fischer, who held dual Israeli and US citizenship, served as governor of the Bank of Israel from 2005 to 2013 and later as vice chairman of the US Federal Reserve.
Born in 1943 in British-controlled Northern Rhodesia (now Zambia), Fischer was raised in a Jewish home and became active in the Labor Zionist youth movement Habonim. He first visited Israel in 1960 on a youth leadership program, studied Hebrew at Kibbutz Ma’agan Michael, and maintained close ties with the country throughout his life. He officially immigrated to Israel to accept the position of central bank governor in 2005, becoming a citizen while retaining his US nationality.
Fischer’s impact on the Israeli economy was profound. Taking office during a period of rapid globalization, he introduced reforms that modernized monetary policy, improved inflation control, and strengthened the Bank of Israel’s independence. His leadership during the 2008 global financial crisis was especially praised. Fischer cut interest rates sharply, intervened in foreign currency markets to support Israeli exports, and shielded the country from deeper financial turmoil. In 2010, the Financial Times gave him a perfect performance rating and called him “the most quietly influential person in global economics.”
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He also helped draft the landmark 1985 Economic Stabilization Plan that rescued Israel from triple-digit inflation and economic collapse. As an American adviser at the time, Fischer worked closely with then-Prime Minister Shimon Peres and Finance Minister Yitzhak Moda’i. Years later, during his term as governor, he earned the trust of Israeli leaders across the political spectrum, including Prime Minister Benjamin Netanyahu and opposition lawmakers.
President Isaac Herzog called him “one of the greatest governors the Bank of Israel has ever known,” adding that Fischer’s “remarkable resilience and strong reputation around the world helped build Israel’s economic credibility.”
After stepping down in 2013, Fischer returned to the United States and was appointed by President Barack Obama as vice chair of the Federal Reserve, serving until 2017. He later joined the board of Bank Hapoalim but stepped down in 2021 to spend more time with family.
Fischer was married to Rhoda Fischer, who died in 2020. The couple had three sons. He is survived by his children and grandchildren.
