Business Notes POLICYMAKERS

Since last summer, when Paul Volcker resigned as Chairman of the Federal Reserve Board, admirers and critics alike have wondered what he would do next. Would Volcker, 60, make millions with one of the investment houses vying for his services? Or would he pursue his professed interest in teaching?

The answer: yes and yes. A 1949 graduate of Princeton's Woodrow Wilson School of Public and International Affairs, he will return as a professor of international economic policy. He will also become chairman of the Manhattan- based James D. Wolfensohn investment firm. Volcker picked Princeton because the school emphasizes broad economic issues. Wolfensohn's allure: the firm is small enough to let Volcker have a major influence, and the job is expected to pay more than $1 million a year. Volcker's annual salary as head of the Fed: $89,500.