Raghuram Rajan won the Financial Times/Goldman Sachs Business Book of the Year Awardfor his book, Fault Lines: How Hidden Fractures Still Threaten the World Economy beating out other authors who have received far more coverage about their books - including Andrew Ross Sorkin's "Too Big to Fail" and Michael Lewis “The Big Short.”
Galleycat reportsthat during his acceptance speech the author, a Professor of Finance at the University of Chicago’s Booth School of Business praised his publisher, Princeton University Press and then offered some fun insight about the book. Rajan said his wife told him to make the book easy-to-read and he joked, if it hadn't been for his children the book would have been written much faster.
Earlier this fall when the book was named as a finalist, the judges said of it, "Raghuram Rajan was one of the few economists who warned of the global financial crisis before it hit. Now, as the world struggles to recover, it's tempting to blame what happened on just a few greedy bankers who took irrational risks and left the rest of us to foot the bill. In Fault Lines, Rajan argues that serious flaws in the economy are also to blame, and warns that a potentially more devastating crisis awaits us if they aren't fixed.
Rajan shows how the individual choices that collectively brought about the economic meltdown – made by bankers, government officials, and ordinary homeowners – 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 those risks pose.
He 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 exposes a system where America's growing inequality and thin social safety net create tremendous political pressure to encourage easy credit and keep job creation robust, no matter what the consequences to the economy's long-term health; and where the US financial sector, with its skewed incentives, is the critical but unstable link between an over-stimulated America and an under-consuming world.
In Fault Lines, Rajan demonstrates how unequal access to education and health care in the United States puts the whole of the US in deeper financial peril, even as the economic choices of countries like Germany, Japan, and China place an undue burden on America to get its policies right.
He outlines the hard choices we need to make to ensure a more stable world economy and restore lasting prosperity."
Congratulations to the author.