Progress in Central Banking

Apparently Raghuram Rajan is a “sexy” banker.

Good for him. During his time at the University of Chicago, it hadn’t occurred to me that he would have international appeal as an economist and a heart throb (one of my daughters is more into Johnny Depp). If it works to help India’s economy, more power to it.

I write a fair amount of cynical and/or critical posts. I thought I’d break that up with a post of something positive I see going on in the world.

Janet Yellen just got nominated for the next Chairman of the Federal Reserve. Rajan is Governer of India’s Reserve Bank.

Coincidentally, I mentioned Rajan in an earlier post, referencing things he said in 2005 about banking instability. And the topic of that post…..why Larry Summers should not be Fed Chairman.

Yellen and Rajan are on different sides of the political divide. Yellen is more liberal. Rajan is more conservative. But they are both be intelligent, honest, and relatively free of ties to investment banks. I happen to think that a policymaker can do a lot of good, regardless of their political affiliation, as long as they have qualities of honesty and objectivity (intelligence is a bonus).

Amazingly, we are getting some good people put into positions of central banking. Let’s hope this lasts.

 Photos by Financial Times and The Saint

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