Barely a year after taking over as the Chief Economic Adviser to the Finance Ministry, Raghuram Rajan was today appointed as the 23rd governor of the Reserve Bank of India for a period of three years. He will replace D. Subbarao, whose term ends in September.
Mr. Rajan's appointment at the central bank comes at a time when the rupee has hit record lows and the RBI seems to be running out of ammo to control the slide. Its baby steps don't seem to be working and its intermittent interventions provide only part-time relief.
Before joining the Indian government last year, Mr. Rajan, an IIT-IIM alumnus, served as the Economic Counselor and Director of Research at the International Monetary Fund. He has also taught at the Graduate School of Business at the University of Chicago.
He has also served as the honorary economic adviser to Prime Minister Manmohan Singh.
The economist, who received his PhD in economics from the Massachusetts Institute of Technology, has been credited with predicting the 2008 global financial crisis.