Raghuram Rajan was one of the few economists who warned of the global financial crisis before it hit. Rajan shows how the individual choices that collectively brought about the economic meltdown--made by bankers, government officials, and ordinary homeowners--were rational responses to a flawed...

Introduction -- A systemic regulator for financial markets -- A new information infrastructure for financial markets -- Regulation of retirement savings -- Reforming capital requirements for financial institutions -- Regulation of executive compensation in financial services -- An expedited...