Raghuram Rajan's name in Clarivate list of Nobel Prize worthies
ECONOMICTIMES.COM|
Oct 07, 2017, 03.58 PM IST
Eagerly awaited on Monday is this year’s Nobel Prize in economics. Guessing the Nobel Prize winner is an old but tough game. There are always dozens of candidates. One more to enter the club of Nobel probables is former governor of Reserve Bank of India (RBI) Raghuram Rajan.
Clarivate Analytics, a company involved in academic and scientific research, maintains a list of dozens of possible Nobel Prize winners based on research citations.
The Wall Street Journal has reported that Rajan is one of the six economists to make their way to the list this year. The reason for Rajan's entry into the list is his "contributions illuminating the dimensions of decisions in corporate finance”.
Though the first non-western and the youngest at 40 to become the chief economist at the International Monetary Fund (IMF) Rajan shot to big fame three years after he presented a counter-intuitive paper at a prestigious annual gathering of economists and bankers in the US in 2005.
He predicted a financial crisis, was made fun of but was proved right three years later when the financial crisis hit the US.
The conference was held in Jackson Hole, Wyoming, in the honour of then US Fed chief Alan Greenspan who had presided over a phase of rapid growth in the American economy. Rajan presented his paper, 'Has Financial Development Made the World Riskier', which was not received well. Former treasury secretary made light of Rajan's warning and called him a luddite, the person who opposes innovation.
Rajan argued that the financial market had developed to become more complicated and less safe. He said financial instruments such as derivatives like credit default swaps were risky.
Three years later, in 2008, credit default swaps brought the US economy down and Rajan was feted for being prescient. Many economists regretted not paying enough attention to Rajan in 2005.
Rajan's entry into the list of dozens of names does not mean he is a front-runner. It's just that he has become a probable who stands a chance to win.
Rajan had expected to get the second term as the RBI president but was not offered to continue. He later revealed he had severe differences with the government over several issues including demonetisation which he has criticised fiercely.
Clarivate Analytics, a company involved in academic and scientific research, maintains a list of dozens of possible Nobel Prize winners based on research citations.
The Wall Street Journal has reported that Rajan is one of the six economists to make their way to the list this year. The reason for Rajan's entry into the list is his "contributions illuminating the dimensions of decisions in corporate finance”.
Though the first non-western and the youngest at 40 to become the chief economist at the International Monetary Fund (IMF) Rajan shot to big fame three years after he presented a counter-intuitive paper at a prestigious annual gathering of economists and bankers in the US in 2005.
He predicted a financial crisis, was made fun of but was proved right three years later when the financial crisis hit the US.
The conference was held in Jackson Hole, Wyoming, in the honour of then US Fed chief Alan Greenspan who had presided over a phase of rapid growth in the American economy. Rajan presented his paper, 'Has Financial Development Made the World Riskier', which was not received well. Former treasury secretary made light of Rajan's warning and called him a luddite, the person who opposes innovation.
Rajan argued that the financial market had developed to become more complicated and less safe. He said financial instruments such as derivatives like credit default swaps were risky.
Three years later, in 2008, credit default swaps brought the US economy down and Rajan was feted for being prescient. Many economists regretted not paying enough attention to Rajan in 2005.
Rajan's entry into the list of dozens of names does not mean he is a front-runner. It's just that he has become a probable who stands a chance to win.
Rajan had expected to get the second term as the RBI president but was not offered to continue. He later revealed he had severe differences with the government over several issues including demonetisation which he has criticised fiercely.
