Book Review: Fault Lines by Raghuram Rajan



Book Review: Fault Lines by Raghuram Rajan

Introduction

About the Author

Raghuram G. Rajan is a prolific and the most reputed economist of the present era. He has produced a number of unmatched and distinctive articles, papers and books on the awareness of economic hurdles, financial obstacles, changing trends in the banking sector and the effects of capitalism. He not just only recognized these diseases but prescribed the best possible cure. His every writing has been appreciated and appraised by each and every person who has some understandings about the changing trends in global economics. One of the finest qualities of Raghuram Rajan was his forecasting and frightening about the fluctuations in the business and corporate sector. He wrote the Fault Lines in the same regard that it was an alarm for the world against the worst economic disaster. He has been awarded many times for his brilliant and diligent work upon the global economics situations (Goldmansachs 2010).

Raghuram Rajan was born on the 3rd of February 1963 in Bhopal in a Tamil family. He completed his graduation and post graduation from India and received his PhD from MIT (Massachusetts Institute of Technology) in 1991.

He has contributed his precious and worthy skill to various reputed International and National Organizations. He has served IMF as an Economic Counselor and a Chief Researcher, Indian Government as an Economic Advisor and Head of Financial Reforms, Visiting faculty of World Bank and Federal Reserve Boards, Director of American Finance Association and a Faculty member of Booth School of Business at University of Chicago (Goldmansachs 2010).

About The Book

The book “Fault Lines: How Hidden Fractures Still Threatens the World Economy” is the master piece of Raghuram Rajan in which he reveled the facts and figures about the major recession- A Tsunami for well settled global economics. Every nation has suffered from the recession which started from the United States in the late 2000's. Raghuram Rajan has indicated those factors, those organizations and those personalities which have worked smartly to bring this disaster alive. The book also reflects the blame game and policies of the self-indulged bankers which causes recent global financial crisis. Rajan's book provides a complete overview of current economical disaster and shaded light on the roots of this crisis, how the structural problems accumulate, how households, banks and the politicians moved towards the structure of the risk while ignoring the interests policy. He also raised an alarm for the global corporate and business sector that if the current economical crises will not be cured then ready to welcome the worst. Rajan reveals the fact that how the choices of every individual is controlled by the bankers and greedy policy makers of Government (Barlas, 2012).

He has also proposed a set of plans considered as a cure for deadly economical and financial diseases. He presented the example of India's, China's, Japan's and Germany's economics and compared it with the economics of other countries so that everyone can evaluate and have a broader idea that ...