Raghuram G Rajan, former IMFchief economist, has been appointed as the Chief EconomicAdvisor in the Finance Ministry.
The Appointments Committee of Cabinet cleared theappointment of Rajan as the new CEA yesterday, sources said.
Rajan, known for his frank views, was also honoraryeconomic advisor to Prime Minister Manmohan Singh. At present,he is a professor in the University of Chicago's Booth Schoolof Business. He is also highly acclaimed for predicting the2008 global financial crisis.
An alumni of IIM-Ahmedabad and IIT-Delhi, Rajan did hisdoctorate from Massachusetts Institute of Technology.
The position of the CEA has been lying vacant sinceKaushik Basu's term ended on July 31. Basu would now return asa professor in Cornell University.
Rajan was also involved with the report on FinancialSector Reforms, which was authorised by the PlanningCommission.