2010 Financial Times Best Book Of The Year

December 15, 2010

The 2010 Financial Times and Goldman Sachs Business Book of the Year award was given to Fault Lines by Raghuram Rajan, one of the few economists to see the financial crisis coming. The Award carries with it a $46,000 prize.

“The book identifies the flaws that helped cripple the world financial system, prescribes potential remedies, but also warns that unless policymakers push through painful reforms, the world could be plunged into renewed turmoil.

Lionel Barber, FT editor and chair of the judging panel, praised Fault Lines as a “serious and sober book” for a time when “sobriety is a virtue”.

The book, published by Princeton University Press, saw off stiff competition from five others on the shortlist, to be chosen as “the most compelling and enjoyable” business title of 2010. The final intense debate among the seven judges came down to a choice between Fault Lines and Too Big to Fail, Andrew Ross Sorkin’s acclaimed minute-by-minute analysis of the collapse of Lehman Brothers.

Prof Rajan was the International Monetary Fund’s chief economist when he warned the 2005 Jackson Hole conference of central bankers that the seeds of disaster were being sown in the financial sector. His presentation jarred with the self-congratulatory tone of the conference, Alan Greenspan’s last as chairman of the US Federal Reserve. Prof Rajan writes in the book that the critical reaction from other participants made him feel “like an early Christian who had wandered into a convention of half-starved lions”. But within three years, his analysis had been vindicated.” Financial Times http://www.ft.com

Click here to see our earlier post on the long-listed books.

Watch a short video of the author giving a recent talk (since the book award was announced) at the University of Chicago: