FAULT LINES - Review of Dr.Raghuram Rajan's book

...........Rajan’s text is accessible to the layman and makes for easy reading. His answers are illustrated with clear and concrete examples and focus on the incentives faced by economic and political factors. His analysis is strongest and most compelling with regard to the fault lines in the financial sector. Readers will quickly see why this book was the FT- Goldman Sachs Business Book of Award winner. While the world is struggling to come out of the crisis, blame falls upon few irrational people who caused this meltdown to happen due to the huge risks they undertook leaving a global recession in its wake. Rajan tries to look beyond these few people who supposedly caused the crisis, to those economic policies which were the actual root cause of the problem - and they still persist. He points out that unless those are looked into we continue to sit on a financial volcano which is causing fissures in the global economic crust the shift of which will cause a massive crisis! He points out that the crisis was a collective problem caused by a large number of individuals who in their own manner were acting as per the flawed economic policies laid out................

Book Review by P.P.Ramachandran