Review of Aditi Sahasrabuddhe’s ‘Bankers’ Trust: How Social Relations Avert Global Financial Collapse’
Renowned author Aditi Sahasrabuddhe has made a remarkable addition to the existing literature on financial crises with her insightful book, ‘Bankers’ Trust: How Social Relations Avert Global Financial Collapse’. Published by Cornell University Press in 2025, the book’s 228 pages delve into the intricate world of financial crises and the international efforts to combat them.
Understanding the Core Argument
Sahasrabuddhe presents an intriguing argument that the depth of financial crises can be attributed, in part, to the relationships between central bankers, especially governors. She posits that interpersonal trust, or the lack thereof, can influence the severity of a crisis, and that such relationships can also determine the level of aid central banks receive during these challenging times.
The Role of Central Bankers
Central bankers play a pivotal role in the global financial ecosystem. Their decisions can significantly impact economies, and the trust they share with their counterparts can determine the effectiveness of international cooperation during crises. Sahasrabuddhe’s book sheds light on this often overlooked side of finance, offering readers a fresh and nuanced perspective.
Interpersonal Trust and Financial Stability
The author presents a compelling case that interpersonal trust fosters financial stability. She suggests that when central bankers trust each other, they are more likely to share vital information, collaborate effectively, and provide necessary assistance during crises. This relationship-based trust can prevent a complete global financial meltdown, thus reinforcing the importance of social relations in the financial world.
Implications for Future Crises
Sahasrabuddhe’s insights have significant implications for how we approach future financial crises. Building trust and fostering strong relationships between central bankers should not be an afterthought, but a strategic consideration. As the book suggests, these relationships could be the difference between a manageable crisis and a catastrophic global financial collapse.
A Valuable Addition to Financial Literature
‘Bankers’ Trust: How Social Relations Avert Global Financial Collapse’ by Aditi Sahasrabuddhe is a valuable addition to financial literature. It offers a unique perspective on the role of trust and social relations in the finance industry, particularly during crises. Moreover, the author’s expertise and authoritative insights make the book a trustworthy source of information. Any reader interested in understanding the dynamics of financial crises and the role of central bankers will find this book illuminating.
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