Raghuram Rajan: Early Life and Prospects.
According to ‘The Hindu’, Raghuram Rajan the 23rd Governor of the RBI is in the race to become the president of the BRICS’ New development Bank. Under the guise of Mr. Rajan the consumer inflation rate which averaged slightly above 9 percent from year 2012 to 2014, has hit a record low of 5. 52percent. Here’s a brief look at the early life and achievements of the leading light of Indian economy.
Raghuram Rajan was born in the year 1963, in Bhopal. After graduating from IIT-Delhi with a bachelor’s degree in mechanical engineering in the year 1985, he got his PGDM from IIM-A in the year 1987. It’s also noteworthy that Mr. Rajan graduated with a gold medal from both these prestigious institutes. In the year 1991 he obtained his PhD in economics from MIT for the thesis titled “Essays on Banking”.
Mr. Rajan, who is a member of G30, assumed the role of the chief economist at IMF from October 2003 to December 2006. He authored the book, “Fault lines: How Hidden Fractures Still Threaten the World Economy”, for which he won the Financial Times-Goldman Sachs prize for best business book in the year 2010. He was the president of American Finance Association in the year 2011.
In the year 2005, at the celebration honoring Alan Greenspan, who was retiring as the Chairman of the FED, Mr. Rajan presented a paper criticizing the financial sector, even though he was criticized for this paper by the stalwarts of the finance industry at the time; after the financial crisis of 2008, his views came to be known as provident.
Mr. Rajan has made it clear that his main concern is controlling inflation. He has been adamant in his stance of not lowering interest rates despite the pressure from the government, which is anxious to deliver on the promises it made prior to coming to power and business houses wanting to ride the growth wave spurred by a stable government. He strongly believes that the economy should rely on structural reforms for growth rather than a favorable monetary policy.
Whether Mr. Rajan is officially announced as a candidate for the NDB’s presidency remains to be seen, but it seems unlikely that he will leave India only months after being at the helm of RBI, when rapid changes are taking place in the global financial markets and the Indian economy is in need of a far sighted economist guiding the monetary policy of the country, a role that fits him perfectly.