Welcomes don’t get much warmer than this—especially not for central bankers. But Raghuram Rajan, the new governor of the Reserve Bank of India, is being treated like a Rockstar by the media and a savior by the markets.
In his first briefing since taking office as governor on Sept. 4, Rajan announced plans to bolster the financial sector and support the rupee. None of the measures were ground-breaking, but the reaction was exuberant. The Economic Times, India’s leading financial newspaper, sketched Rajan as James Bond, replete with a sharp suit and a gun made out of rupee notes.
Nevermind his American citizenship nor the various prestigious organizations he is associated with such as University of Chicago, World Bank, US Federal Reserve Board, Swedish Parliamentary Commission, American Finance Association, International Monetary Fund (IMF) etc. However, one distinct accolade that he has earned is the entry into an elite group of economist czars called the Group of Thirty or just G30 very recently last year just before becoming the Bank Boss of India. For the scope of this article we’ll need to dwell a bit on the background of G30.
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