Fault Lines [ Hardcover] by Raghuram G. Rajan
Fault Lines [ Hardcover] by Raghuram G. Rajan
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Book Summary
Rajan argues that the financial crisis was not merely the result of a few reckless bankers but stemmed from fundamental imbalances and systemic flaws. He identifies three primary "fault lines" that contributed to the crisis:
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Income Inequality in the United States: Rajan highlights the growing disparity between the rich and the poor in the U.S., which led to increased political pressure to provide easy credit to lower-income households. This, in turn, resulted in risky lending practices and the proliferation of subprime mortgages
About the Author
Full Name: Raghuram Govind Rajan
Born: February 3, 1963 – Bhopal, India
Profession: Economist, Author, Professor
Current Position: Professor of Finance at the University of Chicago Booth School of Business
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Chief Economist at the International Monetary Fund (IMF) (2003–2006):
Rajan was one of the youngest people to hold this role. Notably, in 2005, he warned about systemic risks in global financial markets — a warning that proved prescient after the 2008 financial crisis. -
Governor of the Reserve Bank of India (RBI) (2013–2016):
As RBI Governor, Rajan implemented major reforms to stabilize the rupee, combat inflation, strengthen India’s banking sector, and modernize monetary policy. His tenure is widely viewed as bold, pragmatic, and reform-driven.
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