Fault Lines: How Hidden Fractures Still Threaten the World Economy

Raghuram G Rajan

Collins Business

274 pages, Rs 499

Raghuram Rajan was one of the few economists who warned of the global financial crises before it hit. In Fault Lines, Rajan argues that rather than just a few greedy bankers, serious flaws in the global economy are also to blame; he warns that a potentially more devastating crisis awaits us if they are not fixed. Rajan shows how individual choices that collectively brought about the economic meltdown were rational responses to a flawed global financial order in which the incentives to take on risk are incredibly out of step with the dangers that those risks pose.