Fault Lines: How Hidden Fractures Still Threaten The World Economy

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HarperCollins Publishers India, Aug 16, 2017 - Business & Economics - 368 pages
4 Reviews
Raghuram G. Rajan was one of a handful of economists who foresaw the financial crisis that hit the world in 2008. In Fault Lines, Rajan makes a case for looking beyond the shortsighted blame-game that targets only greedy bankers. There are serious flaws in the global economy, he writes, and an even more debilitating crisis awaits us if those faults are not addressed right now. Rajan demonstrates how the individual choices - made by bankers, government officials and ordinary homeowners - that collectively brought about the economic meltdown were rational responses to a defective global financial order: specifically, a mismatch between the incentives and the dangers involved in taking on risks. In Fault Lines, Rajan outlines the hard choices that all nations must make to ensure greater stability and lasting prosperity. Importantly, he examines how the Indian development experience differs from that of other fast-growing economies. Despite India's recent successes, he argues that the country must act decisively to maintain its people-oriented growth. This unique development path, he contends, will be a compelling role model - a triumph of rapid growth in a flourishing democracy.

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User Review  - JohnPhelan - LibraryThing

An interesting and well ordered look at the causes and consequences of the financial crisis from a mainstream but non New Keynesian approach. Its focus on the role of government agencies in the fostering of the housing boom alone makes it worthwhile. Read full review

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User Review  - nosajeel - LibraryThing

Raghuram Rajan is the hands down co-winner of the best title for any economics book in recent years: Saving Capitalism from the Capitalists. It was also a very good book. Relative to this stellar ... Read full review

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About the author (2017)

Indian economist Raghuram G. Rajan is the Katherine Dusak Miller Distinguished Service Professor of Finance at the University of Chicago Booth School of Business. He was the 23rd Governor of the Reserve Bank of India between September 2013 and September 2016. He is also the author of Saving Capitalism from the Capitalists: Unleashing the Power of Financial Markets to Create Wealth and Spread Opportunities.

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