Faultlines By Raghuram Rajan Book Review
The epilogue of the book summarizes its punch line: The crisis has resulted from confusion about the appropriate roles of the government and the market. We need to find the right balance again, and I am hopeful we will. The key idea of Fault Lines is to focus on slow-moving tectonic plates in the global economy: consumption by borrowing in countries with fiscal deficits, excess savings in exporting countries that are fiscally in surplus, and growing sophistication of the financial sector....