Raghuram Rajan

Raghuram Govind Rajan ( born February 3, 1963 in Bhopal, India) is an Indian- American economist. Since 1995 he is professor at the University of Chicago. He advises the Prime Minister of India. From 2003 to 2006 he was chief economist of the International Monetary Fund ( IMF). Since 4 September 2013, directs the Reserve Bank of India, the Mumbai-based Reserve Bank of India (RBI ), in place of D. Subbarao.

  • 4.1 Monographs
  • 4.2 Article

Life

Raghuram Rajan was born in the Indian city of Bhopal. As the son of an Indian diplomat Rajan lived during his childhood in Indonesia, Sri Lanka and Belgium. He studied engineering at the Indian Institute of Technology in Delhi, before he took his MBA at Ahmedabad and finally in 1991 at MIT on Banking was awarded his doctorate for a dissertation entitled essays. Since that time he has taught at the University of Chicago, where he was in 1995 appointed professor. In 2003 he was awarded the Fischer Black Prize. From 2003 to 2006, he was - as the successor to Kenneth Rogoff - chief economist of the International Monetary Fund. In 2013 he received the German Bank Prize in Financial Economics.

Research

Rajan keeps markets and competition for a major driver of the economy, thinks however - unlike the traditionally do as Chicago professors - also according to market failure. " Keynes versus Friedman - that is the dispute of the past," he says. His first monograph was entitled Saving Capitalism from the Capitalists.

Warning of the financial crisis

As at the annual meeting of central bankers in the world in Jackson Hole in 2005, the farewell Alan Greenspan should be celebrated, Rajan disturbed the harmony with a presentation titled Has the development of the world of finance made ​​the world riskier? He answered the question in the affirmative. In his manuscript, he warned: " The interbank market could freeze, and it could easily be a full-blown financial crisis. " Most of the other participants in the conference rejected his conclusion but from. Lawrence Summers said that the conditions of his work was incorrect.

Declaration of financial crisis

In retrospect, Rajan explained the financial crisis in his book, Fault Lines follows: Given enormous economic inequality in the U.S. ( the highest since 1929 ) propagated the governments - perhaps unconsciously - loans with which poor people could buy a house. " Fiscal policy and redistribution seemed difficult, given the polarized environment ," says Rajan. " But to put more money into the housing sector, it could be left as some right political camp. " However, many of the new borrower could afford no house. This created a credit bubble that burst later.

The idea for this conference he held in his native India, where vergäben banks in poor regions particularly large loans. " Populism and credit often go together ," says Rajan.

Government spending and sustainable growth

In spring 2012, Rajan criticized in an article in Foreign Affairs, the idea of ​​the West could be exempted by government spending from the economic crisis. For decades, the West technologically and devices in global competition behind the growth artificially preserved to compensate by government debt and lending is not sustainable. The structural problems of the United States is one of Rajan inadequate training of the workforce and an entrepreneurial spirit and innovation. Southern Europe would mainly reduce its protectionism and government presence in several areas and thus eliminate unnecessary and unproductive work.

Honors

  • 2010: Bernhard Harms Prize from the Kiel Institute for the World Economy

Publications

Monographs

  • Luigi Zingales with: Saving Capitalism from the Capitalists. Princeton University Press, 2004, ISBN 0-691-12128-1.
  • Fault Lines. Princeton University Press, 2010, ISBN 978-0-691-14683-6. German: Fault Lines - distortions. why they still threaten the world economy and what to do now. Financial Verlag, Munich 2012, ISBN 978-3-89879-685-9.

Article

  • Has Financial Development Made the World Riskier? NBER Working Paper 11728, November 2005
  • True Lessons of the Recession. (PDF) In: Foreign Affairs. 5 /2012.
Indian Institutes of Technology Master of Business Administration Deutsche Bank Prize in Financial Economics Milton Friedman Integrated Authority File
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