Jacob A . Frenkel, Governor, Bank of Israel, was Economic Counsellor and Director of Research at the International Monetary Fund between 1987 and 1991. He has held many distinguished positions in the academic world in the University of Chicago, the Tel Aviv University, the Hebrew University of Jerusalem, the Centro de Estudios Macroeconomicos de Argentina and the Institute of World Economics at Kiel. He has been the Editor of the Journal of Political Economy, and the Member of the Editorial board of several Economic Journals and has innumerable publications to his credit on a wide gamut of issues.