One of greatest economic minds of our time:From predicting 2008 Global Financial Crisis to being late PM Manmohan Singh’s right-hand — the Raghuram Rajan story

Bhopal-based eminent economist Raghuram Rajan has added one more feather to his cap. The Reserve Bank of India’s (RBI) former governor has become the very first RBI leader to join a special team at the United States’ central bank, the Federal Reserve. The new leader of the most powerful central bank in the world, the US Fed’s Kevin Warsh, chose Rajan to help fix how the bank works. Rajan will work with a special independent group called the Balance Sheet Policy task force. This team will study how the bank looks after its trillions of dollars. Two other experts of Indian origin, named Raj Chetty and Asha Sharma, are also joining other separate task forces set up to help the US Fed. Raghuram Rajan has worked at top positions of numerous institutions both in India and abroad. His most notable achievement has been predicting a giant economic crash about which we will tell later in the story. Raghuram Rajan – early days Rajan was born in Bhopal on 3 February, 1963. Because his father worked for the Indian government’s intelligence agency, the family travelled to many countries when he was a child. He lived in countries like Sri Lanka, Indonesia, and Belgium. When he was a young boy, he went to the Campion School in Bhopal. He is also an alumnus of Delhi Public School, R.K. Puram, in New Delhi. He finished his school years there in 1981. College days degrees After finishing school, Rajan joined the Indian Institute of Technology (IIT) in Delhi. He studied electrical engineering and passed out in 1985. He was a bright student and won a special gold medal for being the best all-round student in his class. Next, he went to the Indian Institute of Management (IIM) Ahmedabad. He finished his business studies in 1987. Once again, he was the top student and won another gold medal for his high marks. Finally, he travelled to America for higher studies. He went to the world-famous college, the Massachusetts Institute of Technology (MIT). In 1991, he got a PhD, which is the highest university degree, for writing a research paper about how banks work. Professional journey Rajan has worked at many of the most prestigious institutions in the world. Tata Group: Before he went to America for his highest degree, he worked for a short time as a trainee worker at the Tata group in India. University of Chicago: In 1991, he started working as a teacher at the University of Chicago Booth School of Business. He became a professor in 1995. Today, he is still a professor of finance there. Other Top Universities: He also went to teach as a visiting professor at the Stockholm School of Economics in Europe, the Kellogg School of Management, the MIT Sloan School of Management, and the Indian School of Business (ISB) in India. Youngest IMF chief economist: In 2003, he became the Chief Economist of the International Monetary Fund (IMF). He was only 40 years old, making him the youngest person ever to get that job. He worked there until 2006. Government of India: In 2008, he became an adviser to India’s Prime Minister, Manmohan Singh. Later, in 2012, he became the Chief Economic Adviser for the Ministry of Finance in India. The RBI Governor: In September 2013, he took the top job at the RBI. He was the 23rd Governor of the RBI. He ran the bank until September 2016. During this time, he was also chosen as the Vice-Chairman of the Bank for International Settlements (BIS). Hoover Institution: He also works as a senior fellow at a famous American think-tank called the Hoover Institution. Biggest feat – predicting the 2008 financial crash Rajan became famous all over the world because he saw a huge danger before anyone else did. In the year 2005, all the top money leaders met at a big meeting in Jackson Hole, America. Rajan gave a speech warning everyone that banks were taking too many bad risks and a terrible economic crash was coming soon. At that time, other famous experts did not believe him. One famous American official, Lawrence Summers, even called his warnings wrong. But Rajan was right. In 2007 and 2008, the global economy suffered its worst crash since the Great Depression, called the Great Recession. Because he predicted it perfectly, everyone realized he was a true genius. Feud with govt of India When Rajan was the head of the RBI from 2013 to 2016, he reportedly faced disagreements with the politicians in the government of India. Rajan believed that the central bank must be completely independent. To stop prices from rising too fast, Rajan kept interest rates high. However, some government leaders did not like this. They wanted lower interest rates so businesses could borrow money cheaply and grow faster. Because of these strong disagreements, Rajan decided not to stay for a second term. He stepped down in 2016 and went back to teach in America. Now, with his new role at the US Federal Reserve, this brilliant economist from Bhopal continues to show the world his great skills.