The US economy has long endured high inflationary pressures. There is also the problem of unemployment. In this situation, will there be any major changes in the US debt policy in the future? Raghuram Rajan is going to play an important role in this question.
The US central bank, the Federal Reserve, has taken steps to reform the country’s credit policy. A task force has been constituted for this purpose. Former Reserve Bank of India Governor Raghuram Rajan has been invited as a member. Apart from him, the review committee included two other Indians – economist Raj Chetty of Harvard University and Asha Sharma of Microsoft.
In 2012, Raghuram Rajan left his professorship at a reputed university in the United States and returned home. He joined the Government of India as Chief Economic Adviser. The following year, in 2013, the then UPA government at the Center appointed him as the Governor of the Reserve Bank.
The RBI took several important steps during Rajan’s three-year tenure. The Reserve Bank’s handling of inflation, in particular, became the focus of discussion. After his tenure as RBI Governor ended, the eminent economist returned to academia.
US Federal Reserve Chairman Kevin Wares has announced the formation of five special task forces to reform monetary policy and working methods. Besides Raghuram Rajan, the committee includes former Bank of England governor Marvin King, former Walmart CEO Carl Douglas Macmillan, Nobel laureate economist Thomas Sargent and Silicon Valley venture capitalist Mark Anderson.
Raghuram Rajan has been appointed as a member of the Fed Reserve’s Balance Sheet Policy Task Force. However, the US central bank has not yet detailed the scope of their work.
