The University of Rochester economics department has appointed S. Rao Aiyagari professor of economics.
Prior to his appointment, Aiyagari was the senior research officer in the research department of the Federal Reserve Bank of Minneapolis in Minnesota. He was involved in briefing the president of the bank on national and international economic developments and in advising the president on monetary policy.
Aiyagari's research has been focused primarily on macroeconomics, monetary theory and intertemporal general equilibrium theory. He has published papers on taxation, effects of government spending and public debt, business cycles and household saving behavior.
In the past, Aiyagari was a visiting professor at New York University, assistant professor at the University of Wisconsin, and visiting assistant professor at Carnegie-Mellon University.
Currently, Aiyagari is doing research on optimal monetary policy, interest rate and stock market volatility, unemployment insurance, and intergenerational transmission of poverty.
Aiyagari, who holds master's degrees in economics and physics, received his Ph.D. in economics from the University of Minnesota in 1981.