As the world labors to rebound from the worst recession in a generation, policymakers and economists are searching for a definitive explanation for what triggered the crisis. Raghuram Rajan, former chief economist at the International Monetary Fund, asserts that while it is tempting to blame the downturn on a few bankers who took irrational risks and left the rest of us to foot the bill, the primary cause of the crisis was a deeply flawed global economic system that was riddled with structural defects. Moreover, Rajan contends these systemic deficiencies persist to this day and continue to threaten the global economy with the prospect of a more devastating crisis in the future. Rajan outlines the reforms world leaders must make to assure a more stable and sustainable global economy as the final part of The Chicago Council of Global Affairs' Spring 2010 Global Economy Series.
Raghuram G. Rajan is the Eric J. Gleacher Distinguished Service Professor of Finance at the University of Chicago's Booth School of Business, and former chief economist at the International Monetary Fund. Rajan is also currently an economic advisor to the Prime Minister of India, Manmohan Singh. In January 2003, the American Finance Association awarded Rajan the inaugural Fischer Black Prize, given every two years to the financial economist under age 40 who has made the most significant contribution to the theory and practice of finance. A director at The Chicago Council on Global Affairs, Rajan is the coauthor of Saving Capitalism from the Capitalists: Unleashing the Power of Financial Markets to Create Wealth and Spread Opportunity. He received his B.Tech. from the Indian Institute of Technology, his M.B.A. from the Indian Institute of Management, and his Ph.D. from the Massachusetts Institute of Technology.
His latest book, Fault Lines: How Hidden Fractures Still Threaten the World Economy, is available for purchase and signing after the program.
Recorded Monday, June 07, 2010 at The Peninsula Chicago.