Fault Lines

In "Fault Lines," Raghuram Rajan examines the deeper economic flaws that contributed to the global financial crisis and warns of an impending crisis if these issues are not addressed. He argues that the actions of bankers, government officials, and homeowners were rational responses to a dysfunctional financial system that misaligns incentives with risks. Rajan highlights how America's reliance on an indebted consumer and its growing inequality put the global economy at risk, while emphasizing the need for crucial policy changes to foster long-term stability and prosperity.