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'{{Infobox economist | name = Raghuram Rajan | school_tradition = | color = lightsteelblue | image = Raghuram Rajan, IMF 69MS040421048l.jpg | image_size = 200px | caption = Raghuram Rajan at the World Economic Outlook press conference, Washington DC, IMF Headquarters | birth_date = {{Birth date and age|df=yes|1963|02|03}} | birth_place = [[Bhopal]], [[Madhya Pradesh]], [[India]] | death_date = | death_place = | nationality = [[India|Indian]] | institution = [[University of Chicago]] | field = [[Financial economics]] | alma_mater = [[Indian Institute of Technology, Delhi|IIT-Delhi]] (B.Tech.) [[Indian Institute of Management Ahmedabad|IIM Ahmedabad]] (M.B.A.)<ref>[http://www.iimahd.ernet.in/programmes.html]</ref> [[Massachusetts Institute of Technology|MIT]] (Ph.D.) | influences = | opposed = | influenced = | contributions = | awards = 2003 [[Fischer Black Prize]],the [[Financial Times and Goldman Sachs Business Book of the Year Award]] for 2010. | signature =  | repec_prefix = e | repec_id = pra149 }} '''Raghuram Govind Rajan''' (Tamil : ரகுராம் கோவிந்த் ராஜன்)(born 3 February 1963) is currently the [[Eric J. Gleacher]] Distinguished Service Professor of Finance at the [[The University of Chicago Booth School of Business|Booth School of Business]] at the [[University of Chicago]]. He is also an honorary economic adviser to Prime Minister of [[India]] [[Manmohan Singh]] (appointed 2008.)<ref>[http://in.reuters.com/article/idINDEL12487220081103 India PM appoints ex-IMF chief economist as adviser]</ref> and the former president of the [[American Finance Association]]. He previously was the chief economist of the [[International Monetary Fund]] (IMF) and headed a committee appointed by the Planning Commission on financial reforms in India.<ref>[http://ajayshahblog.blogspot.com/2008/04/raghuram-rajans-draft-report.html Planning commission appointed committee]</ref> Rajan is also a visiting professor for the [[Ministry of Finance (India)|Indian Finance Ministry]], [[World Bank]], [[Federal Reserve Board]], and Swedish Parliamentary Commission.<ref>[http://www.chicagobooth.edu/faculty/bio.aspx?person_id=12825569280 University of Chicago Bio]</ref> ==Early life== Raghuram Rajan was born in [[Bhopal]] in 1963. In 1985, he graduated from the [[Indian Institute of Technology, Delhi]], with a bachelor's degree in [[Electrical]] Engineering; he completed the Master of Business Administration at the [[Indian Institute of Management Ahmedabad|Indian Institute of Management, Ahmedabad]] in 1987. He received his [[Doctor of Philosophy|PhD]] in [[Economics]] from the [[Massachusetts Institute of Technology]] (MIT) in 1991 with a thesis entitled "Essays on Banking." ==Career== After graduation, Rajan joined the [[The University of Chicago Booth School of Business|Booth School of Business]] at the [[University of Chicago]]. He was the "[[List of IMF Economic Counsellors|Economic Counselor]] and Director of Research" (Chief Economist) at the [[International Monetary Fund]] from September 2003 until January 2007. In 2003, he was also the inaugural recipient of the [[Fischer_Black#Fischer_Black_Prize|Fischer Black Prize]] awarded by the American Finance Association for contributions to the theory and practice of finance by an economist under age 40.<ref>[https://www.imf.org/external/np/bio/eng/rr.htm Biographical Information, International Monetary Fund]</ref> In 2005, at a celebration honoring [[Alan Greenspan]], who was about to retire as chairman of the [[U.S. Federal Reserve]], Rajan delivered a controversial paper that was critical of the financial sector.<ref>[http://www.nber.org/papers/w11728 Has Financial Development Made the World Riskier?, Nov 2005]</ref> In that paper, "Has Financial Development Made the World Riskier?", Rajan "argued that disaster might loom."<ref>[http://online.wsj.com/article/SB123086154114948151.html Mr. Rajan Was Unpopular (But Prescient) at Greenspan Party, Wall Street Journal]</ref> Rajan argued that financial sector managers were encouraged to <blockquote>(take) risks that generate severe adverse consequences with small probability but, in return, offer generous compensation the rest of the time. These risks are known as tail risks.[...] But perhaps the most important concern is whether banks will be able to provide liquidity to financial markets so that if the tail risk does materialize, financial positions can be unwound and losses allocated so that the consequences to the real economy are minimized.</blockquote> Thus Rajan described the 2007-2008 collapse of the world's financial system.{{Or|date=May 2012}} The response to Rajan's paper at the time was negative. For example, former [[U.S. Treasury Secretary]] and former Harvard President [[Lawrence Summers]] called the warnings “misguided” and Rajan himself a "luddite".<ref>{{Citation |last=Krugman |first=Paul |authorlink=Paul Krugman |date=2 September 2009 |title=How Did Economists Get It So Wrong? |newspaper=New York Times |url=http://www.nytimes.com/2009/09/06/magazine/06Economic-t.html }}</ref> In April 2009, Rajan penned a guest column for [[The Economist]], in which he proposed a regulatory system that might minimize boom-bust financial cycles.<ref>[http://www.economist.com/businessfinance/displayStory.cfm?story_id=13446173 Cycle-proof regulation 8 April 2009]</ref> In 2010, he was named by [[Foreign Policy]] magazine to its list of top global thinkers.<ref>[http://www.foreignpolicy.com/articles/2010/11/29/the_fp_top_100_global_thinkers?page=0,25 "Foreign Policy Magazine"]</ref> In a poll in ''[[The Economist]]'', Rajan ranked first as the economist with the most important ideas in the post-financial crisis world.<ref>The contemporary Keynes." ''The Economist''. 10 February 2011. http://www.economist.com/node/18118985?story_id=18118985</ref> ==Economic and political views== Rajan wrote in May 2012 that the causes of the ongoing economic crises in the U.S. and Europe in the 2008-2012 period were substantially due to workforce competitiveness issues in the globalization era, which politicians attempted to "paper-over" with easy credit. He proposed [[Supply-side economics|supply-side]] solutions of a long-term structural or national competitiveness nature: "The industrial countries should treat the crisis as a wake-up call and move to fix all that has been papered over in the last few decades...Rather than attempting to return to their artificially inflated GDP numbers from before the crisis, governments need to address the underlying flaws in their economies. In the United States, that means educating or retraining the workers who are falling behind, encouraging entrepreneurship and innovation, and harnessing the power of the financial sector to do good while preventing it from going off track. In southern Europe, by contrast, it means removing the regulations that protect firms and workers from competition and shrinking the government's presence in a number of areas, in the process eliminating unnecessary, unproductive jobs."<ref>[http://www.foreignaffairs.com/articles/134863/raghuram-g-rajan/the-true-lessons-of-the-recession Foreign Affairs-Rhaguram Rajan-The True Lessons of the Financial Crisis-May/June 2012]</ref> ==Debates with other economists== During May 2012, Rajan and [[Paul Krugman]] expressed alternate views on how to reinvigorate the economies in the U.S. and Europe, with Krugman mentioning Rajan by name in an opinion editorial. In an article in ''Foreign Affairs'' magazine, Rajan had advocated structural or supply-side reforms to improve competitiveness of the workforce to better adapt to globalization, while also supporting fiscal austerity measures (e.g., raising taxes and cutting spending). Rajan conceded that austerity could slow economies in the short-run and cause significant "pain" for certain constituencies.<ref>[http://www.foreignaffairs.com/articles/134863/raghuram-g-rajan/the-true-lessons-of-the-recession Foreign Affairs-Rhaguram Rajan-The True Lessons of the Financial Crisis-May/June 2012 ]</ref><ref>[http://www.project-syndicate.org/commentary/central-bankers-under-siege Project Syndicate-Raghuram Rajan-Central Bankers Under Seige-May 2012]</ref> Krugman rejected this view, advocating instead traditional Keynesian fiscal stimulus (e.g., spending and investment) and monetary stimulus, arguing the primary factor slowing the developed economies was a general shortfall in demand across all sectors of the economy, not structural or supply-side factors that affected particular sectors.<ref>[http://www.nytimes.com/2012/05/11/opinion/krugman-easy-useless-economics.html NYT-Paul Krugman-Easy Useless Economics-May 2012]</ref> This debate occurred against the backdrop of a significant "austerity vs. stimulus" debate occurring at the time, with some economists arguing one side or the other or a combination of both strategies.<ref>[http://www.bloomberg.com/news/2012-05-12/rehn-rejects-false-choice-between-austerity-stimulus.html Bloomberg-Rehn Rejects ‘False’ Choice Between Austerity, Stimulus-May 2012]</ref><ref>[http://www.nytimes.com/2012/04/29/business/austerity-is-no-quick-answer-for-europe-economic-view.html NYT-Christine Romer-Hey, Not So Fast on European Austerity-April 28, 2012]</ref><ref>[http://www.project-syndicate.org/commentary/the-global-jobs-challenge Project Syndicate-Michael Spence-The Global Jobs Challenge-October 2011]</ref> ==Publications== *''[[Saving Capitalism from the Capitalists]]'', was co-authored with fellow Chicago Booth professor [[Luigi Zingales]] and published in 2004. *''Fault Lines: How Hidden Fractures Still Threaten the World Economy'', published in 2010,<ref>http://press.princeton.edu/titles/9111.html</ref> has won the Financial Times and Goldman Sachs Business Book of the Year Award for 2010.<ref>{{cite news| url=http://blogs.wsj.com/deals/2010/10/28/financial-crisis-cassandra-takes-home-book-prize/ | work=The [[Wall Street Journal]] | first=Shira | last=Ovide | title=The Best Business Book of 2010: ‘Fault Lines' | date=28 October 2010}}</ref><ref>http://www2.goldmansachs.com/ideas/business-book-award/2010-business-book-award/press/winner.html</ref><ref>http://press.princeton.edu/titles/9111.html</ref><ref>http://aboutus.ft.com/2010/08/09/business-book-of-the-year-award-2010-longlist-announced-for-the-financial-times-and-goldman-sachs/</ref> * He has also published numerous articles in top-tier finance and economics journals including the ''[[American Economic Review]]'', ''[[Journal of Economic Perspectives]]'', ''[[Journal of Political Economy]]'', ''[[Journal of Financial Economics]]'', ''[[Journal of Finance]]'' and ''Oxford Review of Economic Policy''. *[http://www.foreignaffairs.com/articles/134863/raghuram-g-rajan/the-true-lessons-of-the-recession The True Lessons of the Recession; The West Can’t Borrow and Spend Its Way to Recovery] by Rajan in May/June 2012 [[Foreign Affairs]] *Several of Dr. Rajan's opinion editorials are available at: [http://www.project-syndicate.org/contributor/raghuram-rajan Rajan-Project Syndicate Opinion Editorials] ==References== {{commons category}} {{Reflist|2}} {{s-start}} {{s-bus}} {{succession box | before = [[Kenneth Rogoff]] | title = IMF Chief Economist | years = 2003–2006 | after = [[Simon Johnson (economist)|Simon Johnson]]}} {{end}} {{Use dmy dates|date=March 2011}} {{Persondata  | NAME =Rajan, Raghuram | ALTERNATIVE NAMES = | SHORT DESCRIPTION = | DATE OF BIRTH =3 February 1963 | PLACE OF BIRTH = [[Bhopal]], [[India]] | DATE OF DEATH = | PLACE OF DEATH = }} {{DEFAULTSORT:Rajan, Raghuram}} [[Category:People from Bhopal]] [[Category:Indian economists]] [[Category:American people of Indian descent]] [[Category:Massachusetts Institute of Technology alumni]] [[Category:MIT Sloan School of Management faculty]] [[Category:University of Chicago faculty]] [[Category:American economists]] [[Category:American economics writers]] [[Category:American academics]] [[Category:Indian emigrants to the United States]] [[Category:Indian Institute of Management Ahmedabad alumni]] [[Category:American Hindus]] [[Category:1963 births]] [[Category:Living people]] [[Category:Indian Institute of Technology Delhi alumni]] [[Category:Tamil people]] [[Category:Recipients of the Infosys Prize‎]] [[de:Raghuram Rajan]] [[ko:라구람 라잔]] [[hi:रघुराम राजन]] [[it:Raghuram Rajan]] [[nl:Raghuram Rajan]] [[fi:Raghuram Rajan]] [[ta:ரகுராம் கோவிந்த் ராஜன்]] [[te:రఘురాం రాజన్]]'

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