Raghuram Rajan appointed 23rd Governor of RBI

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The current Chief Economic Adviser in the Finance Ministry, Raghuram Govind Rajan, has been appointed as the new (23rd) Governor of India’s Central bank- Reserve Bank of India (RBI). He succeeds D. Subbarao in September 2013 and will remain in office for 3 years (which can be extended later by 2 years).

  • An alumni of IIM Ahmedabad , IIT Delhi, MIT (US)
  • former Chief Economist of the International Monetary Fund (IMF)
  • Second youngest Governor of RBI (at 50 years). The youngest was Prime Minister Manmohan Singh appointed in 1982 (at the age of 49 years)
  • credited to have correctly predicted the 2008 global financial crisis in his 2005 paper “Has Financial Development made the world riskier”
  • Chairman of the high-level committee on Financial Sector Reforms (commissioned by Planning Commission)
    Chairman of Expert Committee to draw criteria to determine backwardness of States

CHALLENGES :

  • High Consumer price inflation- leading to tight Monetary policy Stance of RBI thus lowering growth rates
  • Economic Growth slowdown - RBI's growth projections for 2013-14 dipped to 5.5%
  • Sharp depreciation of the rupee (10.76% loss against the US dollar since January 2013 ; worst performer among all major currencies)
  • Widening current account deficit (CAD) - touched 4.8 % of GDP accentuated by increasing gold, oil and coal imports

BOOKS BY HIM :

  • Fault Lines : How Hidden Fractures still threaten the World Economy
  • Saving Capitalism from the Capitalists (coauthored with Luigi Zingales)
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