Mysuru-born Gita Gopinath has joined International Monetary Fund (IMF) as its Chief Economist, becoming the first woman to occupy the top IMF post. Gita Gopinath took charge last week at a time when she believes the world is experiencing a retreat from globalisation, posing challenges to multilateral institutions. Her parents T.V. Gopinath and V.C. Vijayalakshmi, both from Kerala, currently reside in Mysuru.
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The John Zwaanstra professor of International Studies and Economics at Harvard University, Gopinath, a US citizen, succeeds Maurice (Maury) Obstfeld as Economic Counsellor and Director of the IMF’s Research Department. Obstfeld retired December 31.
Announcing her appointment on October 1, IMF Managing Director Christine Lagarde described her as “one of the world’s outstanding economists with impeccable academic credentials, a proven track record of intellectual leadership and extensive international experience.”
The 11th chief economist of the IMF, Mysore-born Gopinath in a recent interview to The Harvard Gazette described her appointment at the IMF as a “tremendous honour” and said the appointment of the first ever woman for this position speaks highly of IMF’s Managing Director Lagarde.
“She is phenomenal, not just in her leadership of the IMF but as a role model for women around the world,” she said.
Identifying some of her top priorities at the IMF, Gopinath told The Harvard Gazette that she would like the IMF to continue to be a place that provides intellectual leadership on important policy questions.
Prominent Indian-American economist #GitaGopinath has joined as the chief economist of the International Monetary Fund, becoming the first woman to occupy the top post at the global lender. #IMF
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“Among the research issues that I would like to push, one would be understanding the role of dominant currencies like the dollar in international trade and finance. We could do more on the empirical side to try to understand countries’ dollar exposures and on the theoretical side in terms of the implications for international spillovers, consequences of dollar shortages, etc,” she said.
Gopinath said there is also a concern about whether there is the right multilateral institutions and frameworks in place to make sure everybody feels that there is fairness in trade. “And the same goes for capital flows,” she added.
“Foreign direct investment (FDI) was always viewed very favourably by countries. But because most of the FDI is now in tech-heavy firms, there are growing concerns about national security and international property theft. So I believe this retreat from globalisation and this retreat from multilateralism is quite unique to the times we are living in,” Gopinath said.
Another important concern, she said, is the health of emerging markets as the US continues to normalize its interest rates.
IMF has appointed Mysore-born #GitaGopinath as its chief economist. She is the first woman to occupy the top executive IMF post.We congratulate one of the world’s outstanding economist with impeccable academic credentials and a proven track record of intellectual works. pic.twitter.com/N2AjpBy7c4
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The capital flows to several markets have reversed, putting pressure on their exchange rates and consequently on inflation, and on balance sheets, given that several emerging markets borrow heavily in dollars, said the IMF chief economist.