Fault Lines-How Hidden Fractures Still Threaten the World Economy is a must read book for any citizen of the world today to understand the Macro Economics governing the world financial markets and the politics behind it.
Raghuram Rajan was one of the few economists who warned of the global financial crisis before it hit. Now, as the world struggles to recover, it's tempting to blame what happened on just a few greedy bankers who took irrational risks and left the rest of us to foot the bill. In Fault Lines, Rajan argues that serious flaws in the economy are also to blame, and warns that a potentially more devastating crisis awaits us if they aren't fixed.
The book, by Raghuram G. Rajan, is very well researched and the author comes across as an authority on the subject. In the book he presents his case and arguments clearly and succinctly. Even an average lay person will be able to easily grasp the complex world of finance and Economics. Raghuram’s book explores what were the various fault lines in the economy which developed into a full blown economic crisis of 2007-09.
The book goes back into history to draw parallels with various economic crisis of the past and how it culminated into the current economic situation.
Raghuram was the Chief Economist at the International Monetary Fund from September 2003 until January 2007.He is an economic advisor to the Prime Minister of India. In Fault Lines, he presents his possible solutions to avoid the economic pitfalls facing the world today. Some of the solutions do seem a bit too farfetched and overly simplistic. The other downside is that the book is too US centric, that is, it presents the American viewpoint of the economic conditions.
Fault Lines is the book to read for anyone who would want to know what economic forces are shaping the world around us.
Recommended read and deserves to be!