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Credit-Crisis Oracle Rajan to Head India’s Central Bank

Raghuram Rajan, whose 2005 warning of a financial crisis was described as “Luddite” by former Treasury Secretary Lawrence Summers, now has the chance to fix another fault line: one caused by foreign-capital flight from India.

Rajan, 50, a University of Chicago professor and ex-International Monetary Fund chief economist, was named the next governor of the Reserve Bank of India yesterday. He said there’s no “magic wand” to solve India’s problems instantaneously, while adding that the central bank and the government will deal with the challenges.