Prof. Cukierman Alex

Ph.D., MIT

  • PhD in Economics from MIT. Prior to joining the Interdisciplinary Center (IDC) Herzliya was a full Professor at Tel-Aviv University and taught at various universities abroad (among them Princeton, NYU, Carnegie-Mellon, Stanford, and Bonn). Research and teaching areas include Macroeconomics, Monetary Theory and Policy and Political Economy. Published 4 books and over 100 scientific articles. His best known book (published in 1992 by MIT Press) entitled “Central Bank Strategy, Credibility and Independence: Theory and Evidence” offers a worldwide view of modern central banking. In 1998 was member of the Levin Committee on reforming the Bank of Israel Charter and in 1997 was President of the Israeli Economic Association.

  • פרופ' אלכס צוקרמן, חבר הוועדה המוניטרית והכלכלן הישראלי המצוטט בעולם, מסביר את המדיניות השמרנית של בנק ישראל. ראיון בלעדי לגלובס, פברואר 2012


    Central Bank Strategy, Credibility and Independence: Theory and Evidence,  The MIT Press, Cambridge, MA, 1992


    Inflation, Stagflation, Relative Prices and Imperfect Information, Cambridge University Press, Cambridge, London, New York, 1984, 200 pages, A shorter version appeared in Italian by Edizioni de Communita, 1984


    A. Cukierman and M. Tommasi
    "When Does it Take a Nixon to Go to China?", American Economic Review, 88, March 1998, 180-197.


    A. Cukierman and M. Tommasi "When Does it Take a Nixon to Go to China?", American Economic Review, 88, March 1998, 180-197.


    "The Economics of Central Banking", in Wolf Holger (ed.) IEA, Contemporary Economic Issues - Macroeconomics and Finance, V.5, The MacMillan Press, 1998. (IEA conference volume 125), 37-82. Also published in Revista Brasileira de Economia, 50, October/December 1996 (Portuguese), in Economic Quarterly, April 1997, 98-138, (Hebrew) and in E. Aguirre, R. Junguito and G. Miller (eds.), La Banca Central en America Latina, Tercer Mundo Editores, Bogota, Columbia, 1997 (Spanish). 


    A. Cukierman and S. Webb 
    "Political Influence on the Central Bank-International Evidence", The World Bank  Economic Review , 9, September 1995, 397-423. 
    Reprinted in S.C.W. Eijffinger (ed.),  Independent Central Banks and Economic  Performance  - The International Library of Critical Writings in Economics Series, 
    Edward Elgar, UK, 1997.


    "Commitment through Delegation, Political Influence and Central Bank Independence". In J.O. de Beauford Wijnholds, S.C.W. Eijffinger and L.H. Hoogduin (eds.), A Framework for Monetary Stability, Financial and Monetary Studies, Kluwer Academic Publishers, Dordrecht, Boston, Lancaster, 1994. 
    Reprinted in S.C.W. Eijffinger (ed.)  Independent Central Banks and Economic Performance  - The International Library of Critical Writings in Economics Series, Edward Elgar, UK, 1997.


    A. Cukierman, P. Kalaitzidakis, L. Summers and S. Webb 
    "Central Bank Independence, Growth, Investment and Real Rates", Carnegie-Rochester Conference on Public Policy , Autumn 1993.
    Reprinted in S.C.W. Eijffinger (ed.) Independent Central Banks and Economic Performance - The International Library of Critical Writings in Economics Series, Edward Elgar, UK, 1997.


    A. Cukierman, S. Webb and B. Neyapti 
    "Measuring the Independence of Central Banks and Its Effect on Policy Outcomes ", World Bank Economic Review , 6, September 1992, 353-398.
    Reprinted in S.C.W. Eijffinger (ed.) Independent Central Banks and Economic Performance - The International Library of Critical Writings in Economics Series, Edward Elgar, UK, 1997.


    A. Cukierman, S. Edwards and G. Tabellini 
    "Seigniorage and Political Instability", American Economic Review, 82, June 1992, 537-555. 


    A. Cukierman and N. Liviatan 
    "The Dynamics of Optimal Gradual Stabilizations", World Bank Economic Review, 6, September 1992, 439-458.


    "Asymmetric Information and the Electoral Momentum of Public Opinion Polls", Public Choice, 70, April 1991, 181-213.


    A. Cukierman and N. Liviatan 
    "Optimal Accomodation by Strong Policymakers Under Incomplete Information" Journal of Monetary Economics , 27, 1, January 1991, 99-127.


    A. Alesina and A. Cukierman 
    "The Politics of Ambiguity", Quarterly Journal of Economics, 105, November 1990, 829-850.


    A. Cukierman and A. Meltzer 
    "A Political Theory of Government Debt and Deficits in a Neo Ricardian Framework", American Economic Review , 79, September 1989, 713-732. 


    A. Cukierman and M. Sokoler 
    "Monetary Policy and Institutions in Israel - Past, Present and Future", Bank of Israel Economic Review, No. 65, March 1993, 67-123.


    "Rapid Inflation - Deliberate Policy of Miscalculation?" Carnegie-Rochester Conference Series on Public Policy , 29, Autumn 1988, K. Brunner and B. McCallum (eds.), 11-84.
    Reprinted in P. Siklos (ed.), Great Inflations of the 20th Century , Edward Elgar, UK, 1995.


    A. Cukierman and A. Meltzer 
    "A Theory of Ambiguity, Credibility and Inflation Under Discretion and Asymmetric Information",  Econometrica , 54, September 1986, 1099-1128.


    "Central Bank Behavior and Credibility - Some Recent Theoretical Developments", Federal Reserve Bank of St. Louis Review, 68, May 1986, 5-17.


    A. Cukierman, K. Lennan and F. Papadia 
    "Inflation Induced Redistributions Via Monetary Assets in Five European Countries: 1974-1980", Economic Policy and National Accounting in Inflationary Conditions - Studies in Banking and Finance, Vol II, 1985, North-Holland Publishing Co. and the EC Publication Office.


    A. Cukierman, L. Leiderman 
    "Price Controls and the Variability of Relative Prices", Journal of Money Credit and Banking, 16, August 1984, 271-284.


    "Relative Price Variability and Inflation - A Survey and Further Results", in K. Brunner and A. Meltzer (eds.), Variability in Employment Prices and Money, Carnegie-Rochester Conference Series on Public Policy, 19, Autumn 1983, North-Holland, Amsterdam 103-158.


    A. Cukierman, P. Wachtel 
    "Relative Price Variability and Non-Uniform Inflationary Expectations", Journal of Political Economy , 30 February 1982, 146-157.


    "Interest Rates During the Cycle, Inventories and Monetary Policy - A Theoretical Analysis", in K. Brunner and A. Meltzer (eds.), The Costs and Consequences of  Inflation, Carnegie Rochester Conference Series on Public Policy, 15, Autumn 1981, North-Holland, Amsterdam, 87-144.


    K. Brunner, A. Cukierman, A. Meltzer 
    "Stagflation Persistent Unemployment and the Permanence of Economic Shocks", Journal of Monetary Economics , 6, October 1980, 467-492. 


    "The Effects of Uncertainty on Investment Under Risk Neutrality with Endogenous Information", Journal of Political Economy, 88, June 1980, 462-475.


    "The Effects of Wage Indexation on Macroeconomics Fluctuations: A Generalization", Journal of Monetary Economics , 6, April 1980, 147-170.


    A. Cukierman, P. Wachtel 
    "Differential Inflationary Expectations and the Variability of the Rate of Inflation: Theory and Evidence", American Economic Review, 69, September 1979, 595-609.


    "The Relationship Between Relative Prices and the General Price Level: A Suggested Interpretation", American Economic Review, 69, June 1979, 444-447.


    "Rational Expectations and the Role of Monetary Policy: A Generalization", Journal of Monetary Economics ,  5, April 1979, 213-229.


    "The Horizontal Integration of the Banking Firm, Credit Rationing and Monetary Policy", The Review of Economic Studies, 45, February 1978, 165-178.


    "A Test of Expectational Processes Using Information from the Capital Markets - The Israeli Case", International Economic Review, 18, October 1977, 737-753.


    A. Cukierman, Z. Shiffer 
    "Contracting for Optimal Delivery Time in Long-Term Projects", Spring 1976,  The Bell Journal of Economics and Management Science, 132-149.


    "A Test of the No Trade Off in Long Run'Hypothesis", Econometrica , Vol. 42, No. 6, November 1974, 1069-1080.


    H. Ben-Shahar, A. Cukierman 
    "The Term Structure of Interest Rates and Expectation of Price Increase and Devaluation", Journal of Finance , June 1973, 567-575.



    A. Cukierman, “Reflections on the Crisis and on its Lessons for Regulatory Reform and for Central Bank Policies”, Forthcoming: Journal of Financial Stability


    A. Cukierman, “The Great Depression, the Current Crisis and Old versus New Keynesian Thinking – What have we Learned and What Remains to be Learned?” Forthcoming in Arnon A., J. Weinblatt and W. Young (eds.), Perspectives on Keynesian Economics, Springer.


    A. Cukierman, “The Roles of Ideology, Institutions, Politics and Economic Knowledge in Forecasting Macroeconomic Developments: Lessons from the Crisis”, CESifo Economic Studies, 56 (4), 2010, 554-575, December.


    A. Cukierman, "Central Bank Finances and Independence – How Much Capital Should a Central Bank Have?",  in Central Bank Finances and their Impact on Independence, Milton S. and Sinclair P. (eds.), 2010, Routledge


    A. Cukierman, “How Would have Monetary Policy During the Great Inflation Differed if it had been Conducted in the Styles of Volcker and Greenspan and with Perfect Foresight?”, Comparative Economic Studies, 2010


    A. Cukierman, "The Limits of Transparency”, Economic Notes, 38, Issue1-2, February/July 2009, pp. 1-37


    A. Cukierman, "Central Bank Independence and Monetary Policymaking Institutions - Past, Present and Future", European Journal of Political Economy, 2008, 24, 722-736.  A shorter version appeared in Spanish in Economia Chileana, V. 9, No. 1, April 2006, 5-23



    Cukierman, Alex and Muscatelli, Anton, "Nonlinear Taylor Rules and Asymmetric Preferences in Central Banking: Evidence from the United Kingdom and the United States", The B.E. Journal of Macroeconomics, 2008, Vol. 8 : Iss. 1 (Contributions), Article 7.


    A. Cukierman , "De Jure, De Facto and Desired Independence: The Bank of Israel as a Case Study", in N. Liviatan and H. Barkai (eds), The Bank of Israel: Volume II, Selected Topics in Israel's Monetary Policy, 2007, Oxford University Press.


    R. Beetsma, A. Cukierman and M. Giuliodori, "On the Relationship between Defense and Non-Defense Spending in the U.S. during the World Wars", Economics Letters, 95, February 2007, 415-421.


    A. Cukierman, "Should the Bank of Israel Have a Growth Target? What are the Issues?", Israel Economic Review, V. 4, N. 2, April 2007, 1-18.


    A. Cukierman, "Central Bank Independence and Policy Results: Theory and Evidence" in Stabiltity and Economic Growth: The Role of the Central Bank - Proceedings of a Conference to commemorate the Eightieth Anniversary of Banco de Mexico, Published: November 2006, Banco de Mexico, 39-52.


    Cukierman and A. Dalmazzo, "Fiscal-Monetary Policy Interactions in the Presence of Unionized Labor Markets", International Tax and Public Finance, 13, 2006, 411-435.


    F. Coricelli, A. Cukierman and A. Dalmazzo, "Monetary Institutions, Monopolistic Competition, Unionized Labor Markets and Economic Performance", Scandinavian Journal of Economics, V. 108, March 2006, 39-63.(Extended older version, January 2004).


    A. Cukierman,  "Keynesian Economics, Monetary Policy and the Business Cycle - New and Old", CESifo Economic Studies, Vol. 51, 4/2005, 697-728.


    A. Cukierman and F. Lippi, "Endogenous Monetary Policy with Unobserved Potential Output", Journal of Economics Dynamics and Control, V. 29, issue 11, November 2005, 1951-1983.


    A. Cukierman, I. Goldstein and Y. Spiegel, "The Choice of Exchange Rate Regime and Speculative Attacks", Journal of the European Economic Association, V. 2, issue 6, December 2004, 1206-1241.(Extended older version, July 2003).


    A. Cukierman, "Monetary Institutions, Monetary Union and Unionized Labor Markets - Some Recent Developments ", in: Beetsma R., C. Favero, A. Missale, V.A. Muscatelli, P. Natale and P. Tirelli (eds.), Monetary Policy, Fiscal Policies and Labour Markets: Key Aspects of Macroeconomic Policymaking in EMU ,2004, Cambridge University Press.


    A. Cukierman, "Non Linearities in Taylor Rules - Causes Consequences and Evidence", October 2004. An earlier version was presented at  the 19th Economic Annual Meeting of the Central Bank of Uruguay, August 2004. To appear in Revista de Economia, Banco Central del Uruguay, November 2004 (Spanish)


    A. Cukierman, Y. Spiegel and  L. Leiderman, "The Choice of Exchange Rate Bands: Balancing Credibility and Flexibility", Journal of International Economics , 62(2), March 2004, 379-408 .


    F. Coricelli, A. Cukierman and A. Dalmazzo, "Economic Performance and Stabilization Policy in a Monetary Union with Imperfect Labor and Goods' Markets", in: Sinn H. W., M. Widgren and M. Kothenburger (eds.), European Monetary Integration, 2004, MIT Press.


    A. Cukierman and Y. Spiegel, “When is the Median Voter Paradigm a Reasonable Guide for Policy Choices in a Representative Democracy?”, Economics and Politics, 15(3), November 2003, 247-284. 


    A. Cukierman and S. Gerlach, "The Inflation Bias Revisited: Theory and Some International Evidence", The Manchester School, 71(5), September 2003, 541-565. 


    A. Cukierman, "Does a Higher Sacrifice Ratio Mean that Central Bank Independence is Excessive?", Annals of Economics and Finance, 3,  2002.


    A. Cukierman, "Are Contemporary Central Banks Transparent about Economic Models and Objectives and What Difference Does it Make?", Federal Reserve Bank of St. Louis Review , 84(4), July - August 2002, 15-45.


    A. Cukierman, G. P. Miller and B. Neyapti, “Central Bank Reform, Liberalization and Inflation in Transition Economies - An International Perspective”, Journal of Monetary Economics, 49, March  2002, 237-264.


    A. Cukierman, "Accountability, Credibility, Transparency and Stabilization Policy in the Eurosystem", in: Charles Wyplosz (ed.), The Impact of EMU on Europe and the Developing Countries, 2001, Oxford University Press, 40-75.


    A. Cukierman and F. Lippi, "Labor Markets and Monetary Union : A Strategic Analysis", Economic Journal, 111, July 2001, 541 - 565.


    A. Cukierman, "Establishing a Reputation for Dependability by Means of Inflation Targets", Economics of Governance , 1,  February 2000, 53-76.
    Reprinted in Lavan Mahadeva and Gabriel Sterne (eds.), Monetary Frameworks in a Global Context,  Routledge, 2000.


    A. Cukierman and F. Lippi, "Central Bank Independence, Centralization of Wage Bargaining, Inflation and Unemployment - Theory and Some Evidence",  European Economic Review, 43, May 1999, 1395-1434.


    A.H. Meltzer, A. Cukierman and S. Richard 
    Political Economy, Oxford University Press, Oxford and New York, 1991 
     


    H. Ben-Shahar, S. Bronfeld, A. Cukierman 
    The Capital Market in Israel, in Israel and the Common Market, Pierre Uri, editor published for the Middle East Institute (Geneva) by Weidenfeld & Nicholson, Jerusalem, 1971, pp. 215-418 
     


    A. Cukierman and M. Tommasi  
    "Credibility of Policymakers and of Economic Reforms", in Tommasi Mariano and Sturzenegger Frederico (eds.) The Political Economy of Economic Reform, The MIT Press, 1998. 
     


    "The Credibility Problem, European Monetary Union and Swedish Monetary Policy", Swedish Economic Policy Review, 4, Spring 1997, 9-50. 
     


    "Targeting Monetary Aggregates and Inflation in Europe"  in Collignon Stefan (ed.) European Monetary Policy, Pinter, London, 1997, 209-228. 
     


    "Central Bank Independence, Growth and Employment", in Central Bank Independence and the Credibility of European Monetary Policy, Austrian National Bank, 1997. 
     


    A. Cukierman, M. Kiguel and L. Leiderman  
    "Transparency and the Evolution of Exchange Rate Flexibility in the Aftermath of Disinflation" , in M. Blejer, Z. Eckstein, Z. Hercowitz, L. Leiderman (eds.), Financial Factors in Economic Stabilization and Growth. Cambridge University Press, Cambridge, UK and NY, 1996. 
     


    "Towards a Systematic Comparison between Inflation Targets and Monetary Targets" in L. Leiderman and L. Svensson (eds.), Inflation Targets, CEPR, London, 1995. 
     


    "Central Bank Independence and Monetary Control", The Economic Journal, 104, November 1994, 1437-1448. 
     


    "Central Bank Independence, Political Influence and Macroeconomic Performance", Cuardenos de Economica, 91, December 1993, 271-292. 
    Reprinted in A. Razin and H.J. Vosgerau (eds.) Trade and Tax Policy, Inflation and Exchange Rates, Springer Verlag, Berlin, Heidelberg, New York, 1997 and in S.C.W. Eijffinger (ed.) Independent Central Banks and Economic Performance - The International Library of Critical Writings in Economics Series, Edward Elgar, UK, 1997. 
     


    A. Cukierman, M, Kiguel and L. Leiderman  
    "Some Evidence on a Strategic Model of Exchange Rate Bands". In L. Leiderman and A. Razin eds. Capital Mobility: The Impact on Consumption, Investment and Growth, Cambridge University Press, 1994, 156-172. 
     


    "Social Security and the Deficit in the U.S. - A Political Economy Approach", in H. Verbon and F. Van Winden (eds.) The Political Economy of Government Debt, North-Holland Publishing Co., 1993, pp. 89-112.  
    Reprinted in  Economic Quarterly , 1, May 1993, 77-119 (Hebrew). 
     


    A. Cukierman, M, Kiguel and N. Liviatan  
    "How Much to Commit to an Exchange rate Rule? Balancing Credibility and Flexibility", Revista de Analisis Economico, 7, June 1992, 73-90. 
    Reprinted in P. Siklos (ed.), Varieties of Monetary Reforms, Kluwer Academic Publishers, 1994. 
     


    "Discretion, Precommitments and the Prospects for a European Central Bank - Fixed Parities Versus a Commonly Managed Currency, in Z. Eckstein (ed.) Aspects of Central Bank Policymaking, Springer Verlag, 1991. 
     


    A. Cukierman and A.H. Meltzer  
    "A Political Theory of Progressive Income Taxation", in A.H. Meltzer, A. Cukierman and S. Richard,  Political Economy, Oxford University Press, 1991. 
     


    "Why Does the Fed Smooth Interest Rates?"  in Monetary Policy of the Fed's 75 Anniversary - Proceedings of the 14th Annual Economic Policy Conference of the Federal Reserve Bank of St. Louis, M. Belongia (ed.), Kluwer Academic Publishers, 1990, 111-147.


    A. Cukierman and A.H. Meltzer  
    "A Political Theory of Government Debt", Economic Quarterly, 137, July 1988, 154 - 158 (Hebrew). 
     


    "The End of the High Israeli Inflation - An Experiment in Heterodox Stabilization", in M. Bruno, G. DiTella, R. Dornbusch, and S. Fischer (eds.), Inflation Stabilization:  The Experience of Israel, Argentina, Brazil, Bolivia and Mexico, MIT Press, 1988, 48-94. 
     


    A. Cukierman and A. Meltzer  
    "The Credibility of Monetary Announcements", in Monetary Policy and Uncertainty, ed. M.J.M. Neumann, 1986, Nomos-Verlagsgesellschaft, Baden-Baden, 39-68. 
     


    A. Cukierman and A. Meltzer  
    "A Positive Theory of Discretionary Policy, The Cost of Democratic Government and the Benefits of a Constitution", Economic Inquiry, 24, July 1986, 367-388. 
     


    A. Cukierman and J. Mortensen  
    "Monetary Assets and Inflation Induced Distortions of the National Accounts - Conceptual Issues and Correction of Sectoral Income Flows in 5 EEC Countries", in Monetary Assets and Inflation Induced Distortions of National Accounts - Studies in Banking and Finance, Vol. I, 1985, North-Holland Publishing Co. and the EC Publication Office, 5-87. 
     


    A. Cukierman, L. Leiderman  
    "Relative Price Variability and Inflation in the Israeli Economy", Bank of Israel Economic Review, 59, May 1985, 47-64 (Hebrew). 
     


    K. Brunner, A. Cukierman, A.H. Meltzer  
    "Money and Economic Activity, Inventories and Business Cycles",  Journal of  Monetary Economics, 11, May 1983, 281-319. 
     


    A. Cukierman, P. Wachtel  
    "Inflationary Expectations - Reply and Further Thoughts on Inflation Uncertainty", American Economy Review, 72, June 1982, 508-511. 
     


    A. Cukierman, P. Wachtel  
    "Inflationary Expectations - Reply and Further Thoughts on Inflation Uncertainty", American Economy Review, 72, June 1982, 508-511. 
     


    "Wage Indexing and the Theory of Indexed Bonds", in Saving Investment and Capital Markets in an Inflationary Economy, eds.: M. Sarnat and G. Szego, Ballinger Publishing Company, 1982, 345-364. 
     


    "Relative Price Variability, Inflation and the Allocative Efficiency of the Price System", Journal of Monetary Economics, 8, April 1982, 131-162. 
     


    A. Cukierman and Y. Cohen  
    "The Functioning of the Free Credit Market in Israel", Bank of Israel Bulletin, 50, March 1979, 53-84 (Hebrew). 
     


    A. Birati, A. Cukierman  
    "The Redistributive Effects of Inflation and of the Introduction of a Real Tax System in the U.S. Bond Market", Journal of Public Economics, 12, 1979, 125-139. 
     


    "Heterogeneous Inflationary Expectations, Fisher's Theory of Interest and the Allocative Efficiency of the Bond Market", Economics Letters, 1, Fall 1978, 151-155. 
     


    A. Cukierman, A. Birati  
    "Taxation of Monetary Gains: Real Versus Nominal Taxation and Changes in Relative Prices", in The Proceedings of the December 1977 Conference of the Israeli Economic Association, 1978
     


    A. Cukierman, A. Razin  
    "The Effects of Indexation of Wage Contracts on Macroeconomic Stability", European Economic Review, April 1977, 83-96. 
     


    A. Cukierman, A. Razin  
    "The Dependence Between Government Exchange Rate Policy and between Imports and Exports", The Proceedings of the April 1976 Conference of the Israel Economic Association, 1976 (Hebrew). 
     


    "General Wage Escalator Clauses and the Inflation Unemployment Tradeoff", Economic Inquiry, 15, January 1977, 76-84. 
     


    A. Cukierman, E. Pazner, A. Razin  
    "A Macroeconomic Model of the Israeli Economy 1956-1974", Bank of Israel Economic Review, No. 44, November 1977, 29-64. 
     


    "Price Level Adjusted Mortgages in Israel", in New Mortgage Designs for Stable Housing in an Inflationary Environment, Federal Reserve Bank of Boston Conferenc Series, 14, December 1975, 159-176. 
     


    "A Study on the Formation of Inflationary Expectations in Israel", in Issues in the Economy of Israel, eds.: N. Halevi, Y. Kop, Falk Research Institute for Economic Research in Israel, May 1975. 
     


    "A Test of the Hypothesis that there is no Long Run Tradeoff between Inflation and Unemployment in the Economy of Israel , in Issues of the Economy of Israel", eds.: N Halevi, Y. Kop, Falk Research Institute for Economic Research in Israel, May 1975, 25-44. 
     


    A. Cukierman, A. Pastor  
    "On the Optimal Durability of Consumer Goods", Revista Espanola de Economia, Vol. 3/1973, 95-110 (Spanish). 
     


    "Money Illusion and the Aggregate Consumption Function: Comment", American Economic Review, Vol. 62, March 1972, 198-206. 
     


    H. Ben-Shahar, A. Cukierman  
    "The Yield to Maturity on Bonds and Expectations of Devaluation and Price Increase 1958-76, Bank of Israel Bulletin, 32, Jerusalem, January 1970, 3-38.