I am a fan of Raghuram Rajan , who predicted the Financial crisis before it happened. This he did while at a dinner party hosted to celebrate the retirement of alan greenspan, the then chairman of US Federal reserve, whom many hold responsible for his loose monetary policies which ultimately led to the financial meltdown.
He was the chief economist at IMF and now a professor of finance at booth school of business,chicago. He is also the economic advisor to the PM of India.
I purchased his book - Fault Lines from flipkart.com. They offered 40% discount!. To hell with bookshops in Bangalore!(who dont offer any discount > 10%). Thanks to excellent customer support from flipkart, i received the book the very next day and started devouring with great apetite from then next day..I am yet to complete the book , but from what i have read it promises to be provide a very good insight into the root causes - not just the superficial reasons as we know them - of the sub-prime crisis.
Ever after, when I hear his name mentioned in the newspapers or articles, i follow them keenly. Today I read another well analyzed aritcle at project syndicate - where he finds reasons on why the government stimulus packages have failed to lower the unemployment rates. As in his original book, he points out that the government policy makers fail to see beyond the surface.He advocates imparting "new-skills" to the construction workers who lost their job following the crisis as key to improving the employment rate. The unemployment rates cannot be lowered by increasing demand as thought of by the policy makers.
In another article , he ponders over why the economists missed predicting the crisis at all. His reasons are both intuitive and insightful.
Note - An excellent article by Paul krugman on the reasons for the financial crisis - explains very lucidly the keynesian and the new-classical school of thoughts...
He was the chief economist at IMF and now a professor of finance at booth school of business,chicago. He is also the economic advisor to the PM of India.
I purchased his book - Fault Lines from flipkart.com. They offered 40% discount!. To hell with bookshops in Bangalore!(who dont offer any discount > 10%). Thanks to excellent customer support from flipkart, i received the book the very next day and started devouring with great apetite from then next day..I am yet to complete the book , but from what i have read it promises to be provide a very good insight into the root causes - not just the superficial reasons as we know them - of the sub-prime crisis.
Ever after, when I hear his name mentioned in the newspapers or articles, i follow them keenly. Today I read another well analyzed aritcle at project syndicate - where he finds reasons on why the government stimulus packages have failed to lower the unemployment rates. As in his original book, he points out that the government policy makers fail to see beyond the surface.He advocates imparting "new-skills" to the construction workers who lost their job following the crisis as key to improving the employment rate. The unemployment rates cannot be lowered by increasing demand as thought of by the policy makers.
In another article , he ponders over why the economists missed predicting the crisis at all. His reasons are both intuitive and insightful.
Note - An excellent article by Paul krugman on the reasons for the financial crisis - explains very lucidly the keynesian and the new-classical school of thoughts...
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