Raghu Rajan update

Finance minister P Chidambaram is learnt to have cleared the appointment of noted economist Raghuram G Rajan as the chief economic advisor.

The approval from the finance minister will pave the way for the government to complete the appointment process although Rajan, who is a professor at the Chicago University Booth School of Business, is unlikely to take up the assignment for the next few months given his academic commitments.

Here is more, hat tip goes to James Crabtree.  Here is further detail.

Comments

that sucks for India -- Rajan is a certified know-nothing...

He'll probably fit right in......

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I hope you're being sarcastic. You're a fool (even if a dead one) if you're not...

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India had a debate over whether the Prime Minister and Supreme Court judges should be exempt from anti-corruption laws.

The best economic advice anyone could give the Indian government is to move against corruption and dishonesty throughout the Indian economy. Nothing else matters as much.

Asking the corrupt to prosecute themselves is naive at best and insane at worst.
What he should be moving for is wholesale auctioning off of state owned industries, deregulation and protection of private property, judicial reform so that cases don't last for 20 years, major infrastructure investments especially in energy and water, and the liberalization of labor markets along with agricultural land reform to allow private sale of agricultural land to anyone for any reason which is not agriculture-related.
That would be a START

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My gut reaction, given Rajan's abysmally low quality analysis of the current situation in the U.S., is "Poor India, haven't they suffered enough?".

On the other hand, given India's past as the "License Raj", it's possible UChicago's stopped clocks could be relevant over there. So, I wish them both luck.

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Hey everyone, i am making a list about the differences and similarities between an economist and an astrologist.
Hope somebody here can help me out and expand the list.

1) Both are quite terrible in predicting the future. But excellent in explaining the facts afterward.

2) Astrologists are cheaper and more truthful about their own limitation.

....

Astrologists have better micro-foundations.

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Astrologists dont have tenure.

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Only economists get an op-ed.

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I thought that India was one of the few countries where, if the Finance Ministry hired an actual astrologer, it wouldn't raise eyebrows.

Both fields contain substantial elements of psychology and sociology.

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I actually think Rajan did a good job of predicting the future, and a terrible one of explaining the facts afterward.

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Excellent choice for India. Keynesian clowns and others have done enough damage to this country, time for someone who understands economics and how value is actually created to have a say.

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It is strange for the finance ministry of India to ask an economist based abroad to be the chief economic advisor. There are economists in India who have been educated in world-class universities who are technically as competent as Rajan and have a better grasp of the Indian economy. Anyways, I can confidently predict that Rajan will soon be frustrated by the bureaucrats and politicians in India and will beg to be relieved unless the finance minister stands by him .

He has already been involved in policy matters in India. Presumably he knows what is he is getting into.

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Raghu Rajan is as competent as anyone I can think of. Quite what he'd do working with the closet socialists all over this govt, I do not know. The optimist in me says Chidambaram, Manmohan Singh are now in effective control of the economy, and we might see some real reform with Rajan guiding them. The realist says, this will be another farcical appointment because there simply is no political will to tackle real issues within a rent seeking, crony system.

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