Press Release: Economic Counsellor Raghuram Rajan Notifies IMF Management of Intention to Return to the University of Chicago

IMF News, August 22, 2006

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Canonical URL: Press Release: Economic Counsellor Raghuram Rajan Notifies IMF Management of Intention to Return to the University of Chicago

Mr. Raghuram Rajan, the International Monetary Fund's Economic Counsellor and Director of its Research Department, notified IMF Managing Director Rodrigo de Rato of his intention to return to his professorship at the University of Chicago by early 2007 when his current leave of absence expires.
Mr. Rajan was named to his current post in July 2003 (see Press Release No. 03/100).
A successor to Mr. Rajan will be named in due course.
Mr. Rajan will stay on at the IMF through the end of the year to complete or substantially complete work in progress.

Promised the Executive Board he intended to stay the full three years that department directors are appointed for, and has done so.
Will return to the University of Chicago because the University indicated an inability to extend his leave when asked about a second term.
Key work he will complete or substantially complete:
- preparing a report on how to better integrate Financial Sector Analysis into the Fund's Article IV work.
Areas of Research Department contribution under his leadership:
- complete review of the Fund's Medium-Term Strategy (Research contributed substantially).
- bringing modern modeling techniques and techniques of exchange rate assessment to Article IV discussions.
- expanded work on finance, aid and development, the political economy of reforms, and reform of the IMF.
- in cooperation with the Asia and Pacific Department, analysis of the growth and integration of China and India into the world economy, putting the Fund at the forefront of policy analysis and discussion on these two countries.
Management approach:
- focus on bringing the right people in, creating an environment for staff to do their job, and listening and learning from staff.
- personal assessment: Research staff and Fund staff are "some of the most intelligent and dedicated people" he has known, and he will miss them.

De Rato’s assessment of Mr. Rajan’s contributions:
- Made many important contributions to the IMF and its membership during his tenure.
- Ensured the Research Department had a major impact on internal policy debate and in enhancing support for the Fund's operational activities.
- Acted as an articulate and influential voice on seizing opportunities from globalization while pointing to emerging risks from global imbalances and rising oil prices.
- Open management style and collegial spirit helped create an attractive work environment for staff.
- Provided management and the Executive Board with innovative and insightful perspectives on a wide range of policy and operational issues.
De Rato characterized Rajan’s departure as a great personal loss and said he will be missed by many friends and colleagues at the Fund.

Press Release No.: 06/182
Date: August 22, 2006
Related Press Release referenced: 03/100
Mr. Rajan’s planned return: by early 2007
Mr. Rajan’s remaining tenure at IMF (to complete work): through the end of the year
Background link provided in the original text: http://www.imf.org/external/np/bio/eng/rr.htm

Source: Press Release No. 06/182, August 22, 2006