Interview with Raghuram Rajan

This is the seventh in a series of interviews with Chicago School economists. Read "After the Blowup," John Cassidy's story on Chicago economists and the financial crisis. (Subscribers only.)

I met Rajan in his office at the Booth School of Business. I began by asking him about the academic work he and several colleagues at the business school did in the years leading up to 2007 on banking and liquidity. In addition to exploring theoretical issues that turned out to be important, Rajan, in...