Raghuram Rajan in race for Bank of England governor

Raghuram Rajan in race for Bank of England governor

New Delhi, Jun 13: Raghuram Rajan has delivered some uncomfortable economic truths in a career spanning the International Monetary Fund (IMF) and powerful positions in India.
The question is whether Brexit Britain is ready to hear them from another foreign Bank of England governor.
The job of stewarding the UK’s monetary policy and maintaining its financial stability has rarely been more political, and Rajan is the only outsider among the top contenders in the running to replace Mark Carney, according to bookmakers and economists who follow the 325-year-old institution.
Carney’s tenure has been overshadowed by the convulsions over Brexit, with some hard liners in the governing Conservatives accusing the Canadian of exaggerating the economic pain and underplaying the benefits of leaving the European Union. As the party chooses a new leader following the resignation of Prime Minister Theresa May, her potential successors have vowed to deliver Brexit, and the latest deadline is October 31.
Rajan has made sympathetic noises toward the UK’s dilemma, particularly the disillusionment in parts of the country that fueled the Brexit vote. He said in March, though, that success depends on the UK re-engaging with the world.
That would start with his appointment, according to David Blanchflower, an economics professor at Dartmouth College and a former Bank of England policy maker. The other top candidates for the job, including front-runner Andrew Bailey, already work at the bank or financial regulator.
It’s a pretty unimpressive bunch, with Rajan sitting head and shoulders above the rest of them, Blanchflower said. The problem is, why would anybody want to put themselves in the position of having to deal with Brexit?
Rajan, 56, a professor at the Chicago Booth School of Business, declined to comment about his potential candidacy when contacted, as did the Bank of England.