Reasons Of The Financial Crisis By Raghuram Govind Rajan

Introduction
In the book writer Raghuram Govind Rajan puts forward the reasons of latest financial crisis. He carries the book with the historical perspective. Rajan digs deep to find the reasons for the world economic stresses and prolonged recessions. While searching the main causes for crisis he also tried to explain why structural problem piled up, how household banks and politicians acted for self interest while ignoring the risk of financial crisis. He also mentioned in the book that policymakers were reluctant to act. The great economic crisis broke up in the housing sector of the US economy and quickly spread to other sectors of the economy through ruined balance sheets of different economic units and severely hit household consumption.

Education also improves the individual income and career prospects. It also has intrinsic value. The book speaks about the lifestyle of educated people. According to the book educated take better care of their health and are also less prone to indulge in criminal activities and are more likely to participate in civic and political activities. They will also influence their children to do same and their education will have beneficial effect on the future

According to the book many countries of west provides unemployment benefits and healthcare benefits. Which inturn proved to be weak safety nets for those economies. However such factors did not affected Indian economy at large. The unemployment benefits was weak net for its short duration and healthcare benefits for its high cost on the government agencies. The case for increasing government spending beyond the automatic stabilizers was not strong the task to stimulate the economy was left on the monetary policy. Book discussed about the holes in the unemployment benefits in the United States. It says that though 90% of workforce is covered in but not more than 40% gets it. A large chunk of population is not eligible for this due to various reasons. From the decades governments has emphasized on rapid restructuring in the face of distress, terminating dying enterprise and financing new