Fault Lines: How Hidden Fractures Still Threaten the World Economy
(Princeton University Press, 2010)
Raghuram Rajan was one of the few economists who warned of the global financial crisis before it hit. In Fault Lines, he argues that serious flaws in the economy are to blame and warns that a potentially more devastating crisis awaits us if they aren't fixed. He also traces the deepening fault lines in a world overly dependent on the indebted American consumer to power global economic growth and stave off global downturns. He then outlines the hard choices we need to make to ensure a more stable world economy and restore lasting prosperity.