Fault Lines
How Hidden Fractures Still Threaten the World Economy
About the book
Raghuram G. Rajan, an economist who warned at the 2005 Jackson Hole conference that banks were taking on more risk, argues that structural flaws, not just a few greedy bankers, helped cause the 2008 crash. He identifies three stresses: widening income inequality in the United States, which pushed politicians toward easy housing credit; trade imbalances that left the world leaning on indebted American consumers; and the clash between arm's length and relationship-based financial systems. Rajan shows how bankers, officials and homeowners each acted rationally inside a flawed order, and outlines hard choices for a steadier world economy. In 2010 it was named Business Book of the Year by the Financial Times and McKinsey.
George A. Akerlof, co-author of Animal Spirits and Identity Economics, endorsed it as the post-crisis book that gets the lessons right.
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This book has 1 recommendation
George A. Akerlof (Co-author/Animal Spirits and Identity Economics)
Fault Lines provides an excellent analysis of the lessons to be learned from the financial crisis, and the difficult choices that lie ahead. Of the many books written in the wake of our recent economic meltdown, this is the one that gets it right.
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