Sankarshan Acharya
Author of Unanimously Agreeable Rules of Governance
Director, Research Center on Finance and Governance

Founder, Pro-Prosperity.Com and Citizens for Development

March 31, 2016

Sankarshan Acharya (Ph.D. in Finance, Northwestern U, 1986; Master of Technology in Industrial Management, Indian Institute of Technology, 1977), Director of Research Center on Finance and Governance (2010-present), Associate Professor of Finance at UIC (1995-present), Financial Economist at Board of Governors of the Federal Reserve System, Washington, D.C. (1990-1995), Assistant Professor of Finance at NYU (1986-1990), Advisor to the Board of Directors of Galgaocar Group, Goa (1981-1983), Lecturer, National Institute of Industrial Engineering, Mumbai (1979-1981), and Scientist C, Council of Scientific and Industrial Research - India (1977-1979).*

Dr. Acharya has accomplished a record of nonpareil peerless research on financial economics which include the following:

A. Discovered a fundamentally fair (constitutional) and unanimously agreeable system (rules) to govern the economy for stability and efficiency.  The discoveries include the following unanimously agreeable rules:

  • Safe central banking rule.[1]  
  • Rule to abolish short-selling of financial securities.[2]
  • Rule to annul the mega privilege granted by the established system to the 'Robber Barons' known as Masters of the Universe and as too-big-to-be-jailed bankers operating too-big-fail banks.  For example, make the market making and clearing completely independent (computerized) with no access without explicit court permission to government regulators, lawmaker, executive or private individual.   The currently established system permits the Robber Barons to (a) use valuable information from trading orders that are required to flow through their market making  subsidiaries and (b) deploy publicly-federally guaranteed deposits of the unprivileged public held in the custody of the mega banks to bet against investments of the unprivileged public.  The privileged Robber Barons are thus guaranteed by the established system at no risk to them to squeeze wealth from all unprivileged investors (long and short in securities)
  • Rule to not lend public funds to private hedge funds. Public Lending to Private Hedge Funds is Inefficient, Unstable, Unconstitutional and Unanimously Disagreeable. This paper (since 2007 when its first draft was widely circulated), continues to be at the epicenter of transformation of USA from its currently established system of robbery of enterprising wealth creators - which I have proved as inefficient, unstable, fundamentally unfair (unconstitutional) and unanimously disagreeable - to an antithetic system which is unanimously agreeable and which attains within a general dynamic equilibrium model as efficient, stable and fundamentally fair or constitutional (Acharya 1991-2016).

B. Vigorously pursued with lawmakers to supplant the currently established fundamentally unfair (unconstitutional), inefficient and unstable system which facilitates surreptitious usurpation of individual and common wealth and makes a few indolent usurpers unseemly rich and powerful by subjugating the true wealth creators to second-best sustenance. [See numerous memos submitted to US Presidents and Lawmakers and made available at

C.  Proved in a more comprehensive mathematical model of microeconomics (designed to generate macroeconomic policies) than any in the extant literature that the fundamentally fair and unanimously agreeable rules of governance attain in general equilibrium of the economy.

D. Proved that the currently established system is fundamentally unfair (unconstitutional), economically inefficient (leading to decay in competitiveness) and unstable (leading to social unrest) in a paper published in 2013 in the Journal of Financial Transformation which claims to have 18 Nobel Laureates as authors.

E.  Showed that the currently established system of governance is driven by self-serving, dogmatic-biased models- pursued over centuries by the elite academy of economics and finance to serve the best interests of Robber Barons and Lawmakers embedded in a game of 'moral hazard' that ultimately decimates everyone's freedom.[3] 

F.  Shown that the extant dogmatic-biased models have shaped the 'modern philosophy,' which is antithetic to the unanimously agreeable philosophy of governance attained in general equilibrium of an unbiased model of microeconomics.

Despite (and perhaps because of) the mighty vested interests suppressing Dr. Acharya's research and his career, he has ultimately triumphed as the only peerless discoverer of a unique nonpareil philosophy of governance of the economy, which is not only unanimously agreeable but also fundamentally fair and needed for economic stability and efficiency.  Piling evidence about triumph of the unanimously agreeable and fundamentally fair philosophy of governance is presented in several papers and memos available at and, in particular, at . The unanimously agreeable principle of governance is absolute and unique epistemic truth.  Such epistemic truth always triumphs.  This is why even the world's most powerful Robber Barons known as the Masters of the Universe and their gurus in the elite academy with their controlled journals and publishing houses eventually failed to block nonpareil research on unanimously agreeable principles of governance as the following significant events indicate:

  • The US Financial Crisis Inquiry Commission, after it received my rejoinder, rejected the testimonies of robber barons, established academic pundits, and government regulators that the 2008 financial crisis was an act of god (invisible hands).  The established experts, industry honchos and regulators had painted falsely that no one in academy, industry or government saw the 2008 crisis coming. The FCIC determined-consistent with my rejoinder-that the 2008 crisis was manmade and avoidable and that it was caused by the established experts, financial industry honchos and government regulators.
  • President Obama followed the same established, failed expertise to print and borrow oodles of new money to revive the economy.  At the end of 8 years, we have $10 trillion of new public debt, $4.5 trillion of new money created by the Federal Reserve, and 94 million of unemployed and underemployed people stilling looking for jobs.  Above all, the degree of inequality has dangerously risen and surpassed the level prevailing before the Great Depression.  Oxfam has reported recently that 62 individuals control more wealth than the bottom half of the world and the top 1 percent have more wealth than the rest.  The issue is not getting rich or poor.  It is instability and inefficiency fostered by a fundamentally unfair system of governance that has only aggravated the crisis so far.  This will regress towards a socialist form of governance that will stifle innovation and wealth creation and perpetually decimate efficiency and competitiveness.  To avert this unanimously disagreeable predicament, there is no option left but to repeal the established system of surreptitious robbery and embrace the unanimously agreeable system to thwart direct/indirect usurpation of individual or common wealth.   
  • New York Times has admitted in a column on January 11, 2016 that the [modern] philosophy [of governance] has lost its way.  NYT should have reported factually in a positive column that the unanimously agreeable philosophy of governance of not robbing anyone even surreptitiously has triumphed over the modern philosophy of systemic robbery.[7] After wide circulation of my researh on unanimously agreeable philosophy of governance triumphing over the modern philosophy, underlying the currently established system of governance, the NYT had carried a series of columns on Aristotle, Plato and Socrates as founders of modern/Western philosophy. Rationally, however, only the ethos that has driven the established Western system of governance (copied all over the world) should be construed as modern/Western philosophy.


*Dr. Acharya has received Ph.D. degree in finance with an award for “excellent performance in doctoral program” from the Kellogg Graduate School of Management at Northwestern University, and Master of Technology in Industrial Management from the Indian Institute of Technology and has studied throughout with merit scholarships and fellowships. 

Dr. Acharya has published major papers in top journals like the Journal of Finance, International Economic Review, Journal of Banking and Finance, Financial Analysts Journal and Journal of Risk Management in Financial Institutions.  One of his papers on optimal bank reorganization and pricing of federal deposit insurance has been on the required reading list of bank regulatory agencies and another on valuation of latent assets has been used in textbooks on econometric estimation of the value of latent information released by firms.  Dr. Acharya’s research has sparked a lot of excitement, resulting in invitations from the U.S. Congress to help draft the U.S. bank regulatory law. He has helped the Federal Reserve Board in establishing optimal bank capital standards, and advised the Federal Deposit Insurance Corporation on deposit insurance reforms.

Dr. Acharya’s current research includes simultaneous determination of (a) fundamentally fair, first-best efficient and stable rules of governance of financial institutions and market making bodies and (b) arbitrage/fair pricing, valuation of total risk of assets; in general long-run dynamic equilibrium models involving capital structure, dividend payout and game theory.  He currently teaches Options and Futures Markets and Fixed Income Securities at University of Illinois at Chicago. His research is selfless and independent without any funding from vested interests. 


[1] Acharya, S. (2016), "Unanimously Agreeable Safe Central Banking,"
[2] Acharya, S. (2012), "Economic Inefficiency and Unconstitutionality of Short-selling and Privileged Private Market Clearing," Journal of Investment Management and Financial Innovations,
[3] Acharya, S. (2013), "Constitutional Capitalism for First-best Efficient Governance, Obtained in general equilibrium based on rational microeconomic analysis, devoid of parochial dogmas, politics or prejudice,"
[4] Acharya, S. (2013), "Constitutional System of Money and Finance,"

[5] Acharya, S. (2014), "Federal Reserve now admits that Moral Hazard in Banking and Finance is a serious problem,"
[6] Acharya, S. (2014), "Federal Reserve now admits that its Models Do not Work,"'t%20Work.html