Essay About "Fault Lines"

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“FAULT LINES” Prepared for: International economics course Prepared by: Carla Payá Alemany Group: GIB ARA P2 Delivery date: 2/05/14 ------------------------------------------------- Proposal: Essay about “Fault lines”, by Raghuram G. Rajan. Index INTRODUCTION 4 LET THEM EAT CREDIT 4 EXPORTING TO GROW 5 FLIGHTY FOREIGN INVESTMENT 5 A WEAK SAFETY NET 5 FROM BUBBLE TO BUBBLE 6 WHEN MONEY IS THE MEASURE OF ALL WORTH 6 BETTING THE BANK 6 REFORMING FINANCE 7 IMPROVING ACCESS TO OPPORTUNITY IN AMERICA 7 THE FABLE OF THE BEES REPLAYED 7 PERSONAL OPINION 7 BIBLIOGRAPHY 8 INTRODUCTION On this book, Rajan suggests that the crises could be like tectonic plates that impact with another and generates a quake that scares the society. These could be the consumption by borrowing in countries with fiscal deficits, excess savings in exporting countries that are fiscally in surplus, and growing sophistication of the financial sector. It proposes valuable reforms, focusing on building a better safety net in the USA, reducing the global imbalances and regulating of the financial sector. Hence, on this essay I am going to explain with my own words and knowledge the different themes the author analyzes, as well as try to obtain a kind of conclusions from my point of view. LET THEM EAT CREDIT Over the years, technological changes required workers to have a college degree. Also, the quality of learning in schools is poor, many students are unprepared for university and as the college premium increases, the cost of higher education also does. So the gap between growing demand for skilled workers and supply affected by defects in education’s quantity-quality implies growing inequality. This coincides with a period of deregulation. Greater immigration and trade, reduction of workers’ bargaining power due to weaker unions, women’s entry on the workforce,
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