Press Release No. 03/100

Press Release: IMF Managing Director Köhler Proposes Raghuram Rajan as Economic Counsellor and Director of the IMF's Research Department

July 2, 2003

Horst Köhler, Managing Director of the International Monetary Fund (IMF) has notified the IMF Executive Board of his intention to appoint Professor Raghuram Rajan, a distinguished economist at the University of Chicago Graduate School of Business, to the position of Economic Counsellor and Director of the Research Department at the IMF. He will succeed Kenneth Rogoff, who had earlier announced his decision to return to academia in the Fall of 2003 (see Press Release No.03/61, April 29, 2003).

In making this announcement, Mr. Köhler said: "I am indeed happy to announce my intention to appoint Raghuram Rajan, currently Joseph L. Gidwitz Professor of Finance at the University of Chicago Graduate School of Business, as Economic Counsellor and Director of the Research Department. Mr. Rajan has been at the forefront of work on banking and financial sector issues. With his exceptional rise within the economics profession as well as with his extensive experience, Mr. Rajan will bring a strong and proven record of intellectual leadership to the IMF. This will be an asset to develop further the IMF's research program to the leading edge of economic theory and policy. His particular experience in financial sector issues will help strengthen the IMF's role as a center of excellence in macroeconomic and financial sector stability. As Economic Counsellor, I am confident that Mr. Rajan will help the Fund meet its responsibilities in supporting its members in an increasingly complex and challenging global environment."

Mr. Rajan, 40, an Indian national, has published extensively on economic and financial matters. Prior to his present appointment at Chicago, Mr. Rajan has held professorships at MIT, Northwestern University, and the Stockholm School of Economics. He was awarded the prestigious inaugural Fisher Black Prize by the American Finance Association in January 2003 given to the person under 40 who has contributed the most to the theory and practice of finance. He is a director of the American Finance Association, an associate editor of the American Economic Review, and a program director for corporate finance at the National Bureau of Economic Research. He has also been a consultant to the Federal Reserve Board, the World Bank, the IMF and various financial institutions.