Former RBI governor Raghuram Rajan should head Federal Reserve, thinks this US website

Raghuram Rajan had warned the Modi-led government against the demonetisation exercise, when much of the country's higher denomination currencies were withdrawn from circulation as an attempt to curb black money.

By: Express Web Desk | New Delhi | Updated: October 31, 2017 2:58:34 pm
Raghuram Rajan, Federal Reserve, US Central Bank head, Donald Trump, RBI governor Raghuram Rajan, Raghuram rajan indian, modi, economic policies, world economy, indian express Former RBI Governor Raghuram Rajan. (PTI Photo)

Former Reserve Bank of India (RBI) Governor Raghuram Rajan’s credentials—from among very few to have predicted the 2008 global financial crisis to virtually halving the double-digit inflation of the country—have been widely acclaimed across the globe .

Having been featured in the list of probables for this year’s Nobel Prize in Economics brought out by Clarivate Analytics further reaffirms Rajan’s mettle as an influential economist.

Rajan, who served as RBI governor from September 2013 to August 2016, should be an ideal pick to head the Federal Reserve, US central bank, according to an article published by Barron’s, an American weekly newspaper. This comes at a time when US President Donald Trump is set to announce his pick for the US central bank.

“Nowhere on the short list of potential candidates to lead the Federal Reserve is the current star among the world’s central bankers—someone who oversaw a sharp drop in inflation, the stabilization of a currency, and a 50% jump in stock prices,” said the article of Rajan.

There have been precedents for central banks to be headed by the non-citizens such as Canadian-born Mark Carney at the Bank of England.

After his stint as the RBI governor, Rajan has gone back at the Booth School of the University of Chicago, where he had taught until 2003. During that period, he also became the youngest chief economist and was appointed as the director of research at the International Monetary Fund, the first non-Westerner to hold the post.

His opinions regarding economic policies are keenly observed across the world. He had warned the Narendra Modi-led government against the demonetisation exercise carried out last year, when much of the country’s higher denomination currencies were withdrawn from circulation as an attempt to curb black money.

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