In 2005, the world’s leading economists gathered for an annual meeting in Jackson Hole, Wyoming to discuss the global economy, and to honor soon-to-retire Alan Greenspan. Raghuram Rajan, then a professor at the University of Chicago presented a paper titled “Has Financial Development Made the World Riskier?” In his analysis, Rajan predicted certain risk factors that contributed to the financial collapse that would eventually trigger the Great Recession, years before it happened. But no one wanted to hear about his negative outlook in 2005.
Rajan was chief economist of the International Monetary Fund from 2003 to 2006 , and he’s now the head of India’s central bank. Rajan’s role in financial history was chronicled in the documentary “The Inside Job.” We asked Rajan what worries him about the global economy now.
On Wednesday, we aired an interview with Rajan on the PBS NewsHour.