April 18, 2019 | By Raghuram Rajan

Wait Just a Minute: Raghuram Rajan

Former Governor of the Reserve Bank of India Raghuram Rajan takes a minute to explain what bananas reveal about markets and governments, the importance of communities in economics, and whether China or India has a more enviable economy.

Wait Just a Minute: Raghuram Rajan


What do bananas teach us about markets and government?

Well, the European Union wanted to create uniform rules across the Union, and one bureaucrat there decided that amongst the rules were the curvature of bananas that were allowed, as well as the curvature of cucumbers. A rule went out that you couldn't serve bananas and cucumbers which had more than a certain degree of curvature. It seemed nonsensical, but it tells us that as markets grow, government also grows with it.

What does a healthy community look like?

There are plenty of healthy communities. Typically, there's a leadership that people believe in. There's also engagement, people look out for one another without being forced to do that. And I think across the world, whether rich or poor, you can find these communities.

Is China's or India's economy in a more enviable position?

China has the perfect administration and economy for where it has come. So, it's done wonderfully well, but it has constraints going forward, amongst which are the lack of democracy. India has the perfect economy for what is to come, but it first has to get there.

Who is the most important economist of the last 100 years?

I think it's it's really a contest between John Maynard Keynes and Joseph Schumpeter. Both very exciting economists.

About

The Chicago Council on Global Affairs is an independent, nonpartisan organization that provides insight – and influences the public discourse – on critical global issues. We convene leading global voices and conduct independent research to bring clarity and offer solutions to challenges and opportunities across the globe. The Council is committed to engaging the public and raising global awareness of issues that transcend borders and transform how people, business, and governments engage the world.

The Chicago Council on Global Affairs is an independent, nonpartisan organization. All statements of fact and expressions of opinion in blog posts are the sole responsibility of the individual author(s) and do not necessarily reflect the views of the Council.

Archive

Wait Just a Minute: Graeme Woods

Journalist Graeme Wood, author of The Way of the Strangers: Encounters With the Islamic State, takes a minute to discuss the difference between ISIS and Al Qaeda, and if ISIS has truly been defeated.




Wait Just a Minute: Dr. Alaa Murabit

Dr. Alaa Murabit, a UN High-Level Commissioner on Health Employment and Economic Growth, takes a minute to answer questions on gender equality, its role in global security, what part education plays in promoting gender equality, and what individuals can do to promote gender equality as well.












Urban Reflections from the 2019 International Student Delegation

Each year approximately 30 students from leading research universities around the world participate in the global student delegation program at the Pritzker Forum on Global Cities. Promising students who have demonstrated a commitment to improving global cities and are enrolled in a master’s or PhD program are nominated by their host universities to attend. The 2019 delegation included 30 students from 20 countries, including China, Egypt, Ethiopia, Germany, Israel, Saudi Arabia, South Africa, and the United Kingdom. Their biographies are available here.

The following series of contributions are their reflections and insights inspired by and drawn from their experience attending the 2019 Pritzker Forum.