Jon Hartley and Raghuram Rajan discuss Raghu’s research, his policy career including his time as the Governor of the Reserve Bank of India and the Chief Economic Adviser to the Government of India under Prime Minister Manmohan Singh, India adopting inflation targeting during his tenure, Rajan predicting the 2008 financial crisis, and economic growth in India, the legacy of his book Saving Capitalism from the Capitalists among many other topics. Recorded on February 19, 2025. ABOUT THE SPEAKERS: Raghuram Rajan is the Katherine Dusak Miller Distinguished Service Professor of Finance at Chicago Booth. He was the 23rd Governor of the Reserve Bank of India between September 2013 and September 2016. Between 2003 and 2006, Dr. Rajan was the Chief Economist and Director of Research at the International Monetary Fund. Dr. Rajan’s research interests are in banking, corporate finance, and economic development. The books he has written include Breaking the Mold: Reimagining India's Economic Future with Rohit Lamba,  The Third Pillar: How the State and Markets hold the Community Behind 2019 which was a finalist for the Financial Times Business Book of the Year prize and Fault Lines: How Hidden Fractures Still Threaten the World Economy, for which he was awarded the Financial Times prize for Business Book of the Year in 2010. Dr. Rajan is a member of the Group of Thirty. He was the President of the American Finance Association in 2011 and is a member of the American Academy of Arts and Sciences. In January 2003, the American Finance Association awarded Dr. Rajan the inaugural Fischer Black Prize for the best finance researcher under the age of 40. The other awards he has received include the Infosys Prize for the Economic Sciences in 2012, the Deutsche Bank Prize for Financial Economics in 2013, Euromoney Central Banker Governor of the Year 2014, and Banker Magazine (FT Group) Central Bank Governor of the Year 2016. Dr. Rajan is the Chairman of the Per Jacobsson Foundation, the senior economic advisor to BDT Capital, and a managing director at Andersen Tax. Jon Hartley is a policy fellow, the host of the Capitalism and Freedom in the 21st Century Podcast at the Hoover Institution and an economics PhD Candidate at Stanford University, where he specializes in finance, labor economics, and macroeconomics. He is also currently an Affiliated Scholar at the Mercatus Center, a Senior Fellow at the Foundation for Research on Equal Opportunity (FREOPP), and a Senior Fellow at the Macdonald-Laurier Institute. Jon is also a member of the Canadian Group of Economists, and serves as chair of the Economic Club of Miami. Jon has previously worked at Goldman Sachs Asset Management as well as in various policy roles at the World Bank, IMF, Committee on Capital Markets Regulation, US Congress Joint Economic Committee, the Federal Reserve Bank of New York, the Federal Reserve Bank of Chicago, and the Bank of Canada.  Jon has also been a regular economics contributor for National Review Online, Forbes, and The Huffington Post and has contributed to The Wall Street Journal, The New York Times, USA Today, Globe and Mail, National Post, and Toronto Star among other outlets. Jon has also appeared on CNBC, Fox Business, Fox News, Bloomberg, and NBC, and was named to the 2017 Forbes 30 Under 30 Law & Policy list, the 2017 Wharton 40 Under 40 list, and was previously a World Economic Forum Global Shaper. ABOUT THE SERIES: Each episode of Capitalism and Freedom in the 21st Century, a video podcast series and the official podcast of the Hoover Economic Policy Working Group, focuses on getting into the weeds of economics, finance, and public policy on important current topics through one-on-one interviews. Host Jon Hartley asks guests about their main ideas and contributions to academic research and policy. The podcast is titled after Milton Friedman‘s famous 1962 bestselling book Capitalism and Freedom, which after 60 years, remains prescient from its focus on various topics which are now at the forefront of economic debates, such as monetary policy and inflation, fiscal policy, occupational licensing, education vouchers, income share agreements, the distribution of income, and negative income taxes, among many other topics. For more information, visit: capitalismandfreedom.substack.com/

Neale Mahoney, a Stanford Economics Professor and former Special Policy Advisor in the Biden Administration, dives into revealing insights on consumer sentiment and its influence on economic conditions. He discusses the troubling rise of junk fees and their opacity in consumer markets. Mahoney also tackles the serious issue of medical debt, exploring policy initiatives aimed at alleviating financial strain. Finally, he highlights how evidence-based policies can bridge divides, bringing progressive and centrist factions together in support of consumer protection.

Adriana Kugler, a Federal Reserve Governor and former U.S. Executive Director at the World Bank Group, dives deep into US monetary policy and its impact on inflation and labor markets. She discusses the Federal Reserve's balance sheet reduction and its implications for economic stability. Kugler also explains the concept of R-star, the neutral interest rate, and how it relates to productivity and government debt. The conversation highlights optimistic labor market trends while navigating the complexities of inflation targeting in today's economy.

In this engaging conversation, Joe Lonsdale, founder and managing partner at 8VC and co-founder of Palantir Technologies, delves into his impressive career and innovative ventures. He highlights the transformative potential of generative AI in enhancing productivity across sectors like healthcare. Lonsdale critiques the influence of wokeness in education and tech, advocating for reforms in accountability and governance. He also discusses navigating investment opportunities in AI and the unique challenges faced by the University of Austin, aiming to foster critical thinking and classical virtues.

Douglas Irwin, a leading economist from Dartmouth College and expert in trade policy, shares insights on U.S. trade history and the evolution of tariffs. He discusses the impact of globalization on consumers and labor markets and examines the fading influence of the World Trade Organization. Irwin analyzes recent U.S. actions affecting steel imports and delves into the resilience of the U.S. dollar amidst global shifts, highlighting ongoing complexities in semiconductor trade policy and its implications for national security.

In this discussion, David Beckworth, a Senior Research Fellow at the Mercatus Center, dives into the fascinating world of monetary policy. He shares insights from his career and compares Nominal GDP targeting with traditional inflation targeting. The conversation highlights how GDP targeting could stabilize economies better during downturns and the challenges of using accurate data for policy decisions. Additionally, they explore the Fed’s evolution in addressing inflation and how shifting to a floor system impacts global central banks.

Myron Scholes, a Nobel Laureate and co-originator of the Black-Scholes options pricing model, shares his remarkable journey from a mining town in Canada to the forefront of financial economics at the University of Chicago. He discusses the transformative impact of his model on options trading and investment banking, and the challenges faced during its development. Scholes also delves into the interplay between financial regulation and innovation, emphasizing the need for adaptability in an ever-evolving market landscape.

Brad Gerstner, Founder and CEO of Altimeter Capital, shares insights on his journey from Indiana to managing over $15 billion in tech investments. He discusses the role of free markets in economic growth, the challenges of navigating law and innovation, and the impact of the CHIPS Act on national security. Gerstner also proposes 'baby equities,' investment accounts for children to foster financial literacy and bridge wealth gaps, envisioning a brighter economic future for the next generation.

James Bullard, former president of the St. Louis Fed and dean at Purdue University, shares insights from his extensive career in monetary policy. He highlights key transformations in the Fed’s leadership under Bernanke and the importance of diverse economic perspectives. The conversation also covers the critical role of forward guidance during the Great Recession and recent inflation challenges. Bullard emphasizes the need for credible communication in monetary policy and discusses innovative approaches in business education that blend technology with traditional learning.

Jesus Fernández-Villaverde, a renowned Economics Professor at UPenn and director at Penn's Institute for the Study of Markets, dives into pressing economic themes with host Jon Hartley. They tackle the alarming decline in fertility rates and how this impacts global GDP growth, particularly in Japan. Fernández-Villaverde discusses the evolution of economic models, illustrating the differences between DSGE and VAR approaches. They also explore the complexities of macroeconomic theory, including the challenges of recessions and the critical role of institutions and economic education.