Rajan back to ‘ultimate home of ideas’


Raghu Ram Rajan

Former RBI Governor Raghuram Rajan has resumed his role as ‘Distinguished Service Professor of Finance’ at the University of Chicago Booth School of Business and would teach international corporate finance in his ‘ultimate home of ideas’ in the winter of 2017. Chicago Booth School said this course will explore the challenges of corporate finance and investment in a more integrated global economy.
“How should one optimally organize the location of production, control, and financing? What kinds of new concerns emerge when the whole world, rather than just one’s domestic economy, become the arena of decision making? How does decision making depend on the environment one is doing business in? Most students will see this as an alternative to the case course in corporate finance, but some could see it as a complement,” it said about Rajan’s course.
Interestingly, the Chicago Booth School has listed “Indian politics” among Rajan’s interests, besides tennis, squash, and history. Giving further details, it said the format of Rajan’s course would include discussions, case studies and “ethics discussion/comment”. “The course will be based on a set of readings and cases… Grades will be based on class participation, case- write-ups, and an exam,” it added.
The business school has also named two forthcoming publications of Rajan — one on “the Corporation in Finance’ and the other jointly with Douglas Diamond on ‘Illiquid banks, Financial Stability, and Interest Rate Policy’.
Rajan, who is credited to have predicted the global financial crisis of 2008, is also a member of the Group of Thirty and was the President of the American Finance Association in 2011 and is a member of the American Academy of Arts and Sciences.

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