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From 1977 to 1978,Subbarao took study leave to earn a master's degree in economics at Ohio State University. From 1982 to 1983,he was a Humphrey Fellow at MIT,where he studied public finance.[7] In 1988,he received a PhD in economics from Andhra University.[8] His doctoral thesis was titled Fiscal reforms at the sub-national level.
Career
Subbarao's early career included field postings in Andhra Pradesh. As the Collector of the Khammam District in 1979,he implemented the Land Transfer Regulation,which primarily involved restoring land to tribal households that had lost it due to indebtedness,as stipulated by protective legislation. As managing director of the Andhra Pradesh State Finance Corporation (1986–88),he supported small-scale industrial and service sector initiatives.
Subbarao was on deputation to the Government of India as a joint secretary in the Ministry of Finance,[9] where he helped formulate and implement the 1991 reforms. From 1993 to 1998,he served as the Finance Secretary to the Government of Andhra Pradesh. He contributed to the state government's decision to publish a white paper in 1996 on state finances,which garnered popular support for economically difficult reforms.
From 1999 to 2004,he worked as a Lead Economist at the World Bank,where he promoted public expenditure reforms in developing countries. He also led the Bank's study on decentralization in East Asia.
Upon returning to India from the World Bank,he was appointed to the Prime Minister's Economic Advisory Council (2005–07),before becoming the Finance Secretary in 2007. On 5 September 2008,he was appointed Governor of the Reserve Bank of India (RBI),[10] becoming the first serving civil servant and the first person born after Independence to hold the post. Arun Ramanathan was appointed as Finance Secretary on 21 September 2008,filling Subbarao's vacancy.[11] Subbarao's term as RBI Governor was extended for two years in 2011.[12]
Achievements
As Finance Secretary to the Government of India,Subbarao questioned the allocation of valuable spectrum to telecom operators in 2007 at prices set in 2001,arguing for fresh bidding to determine the current market value. He later testified in the CBI case regarding alleged corruption by ministers and civil servants in the allocation of 2G spectrum,and the judge cited his testimony in the judgment.
His tenure as RBI Governor coincided with the global 2008 financial crisis. He introduced liquidity and monetary measures to stabilize the economy and later faced challenges of inflation and currency depreciation linked to U.S. quantitative easing. While he has been credited with navigating India through the crisis,some analysts criticized his handling of the rupee during the taper tantrum period.
During his term,Subbarao emphasized the autonomy of the central bank,increased public engagement on monetary policy,and promoted financial inclusion initiatives,[13] open communication channels with stakeholders,and outreach to the public. He helped ensure financial inclusion in the Ernakulam district of Kerala.[14] Subbarao is known for his theory of the New Trilemma of central bankers,referring to the "Holy Trinity" of price stability,financial stability,and sovereign debt sustainability as opposed to the well-known "impossible trinity" of the Mundell's of a fixed exchange rate,free capital flows,and independent monetary policy.[15][16] Subbarao's exposition of the holy trinity has established the Indian perspective[17] in the debate on the global central banking trilemma.[18]
Personal life
Subbarao is married to Urmila Subbarao.[19][20] Together,they have two sons,Mallik and Raghav,both of whom are graduates of the Indian Institutes of Technology (IIT),like their father.
Works
Subbarao's book,Who Moved My Interest Rate?:Leading the Reserve Bank of India Through Five Turbulent Years,was published in July 2016.[21][22][23][24][excessive citations] In 2024,he published his autobiography titled Just A Mercenary?:Notes from My Life and Career.[25]
↑ "Civil List". Ministry of Personnel, Public Grievances and Pensions. Government of India. Archived from the original on 18 July 2011. Retrieved 5 September 2008.
↑ Subbarao, Duvvuri (2016). Who Moved My Interest Rate?: Leading the Reserve Bank of India Through Five Turbulent Years. Penguin, Viking. ISBN978-0670088928.
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