Holmes and the Theranos Affair

Lessons from Theranos for Corporate Governance

Elizabeth Holmes, founder and CEO of Theranos — Elizabeth Anne Holmes, founder and CEO of Theranos

This Holmes was the subject of many investigations and a trial that ended in conviction. She was not just complicit. She was the perpetrator. If the DOB (Directors on Board) did not bark or howl, they were well taken care of. Even if they whined, she charmed her way through. In any case, they seemed keen to add a new generation tech firm to an already impressive list of credentials. They were victims of the promise or illusion of mentoring the next Bill Gates or Steve Jobs.

Such a bland assessment would have been kosher for most ordinary Boards. But we have here the likes of George Shultz (1920-2021), former Secretary of State, and also of labour and treasury, best known as the man who ended the cold war. If Shultz was not enough, we have Henry Kissinger (b. 1923), former secretary of state, and William Perry (b. 1927), former secretary of defence. All of them were then, or are now, in their 90s. The Holmes-Theranos affair offers interesting lessons for good corporate governance. Continue reading “Holmes and the Theranos Affair”

Ten economic predictions for 2022

Predictions

“Prediction is very difficult, especially if it’s about the future” is a famous quote attributed in different forms to people ranging from Niels Bohr, the great physicist and Nobel Laureate, to Yogi Berra, the all-time great baseball catcher. But, that has never deterred predictions, especially economic predictions, as a universal beginning-of-the-year pastime. Continue reading “Ten economic predictions for 2022”

Jackson Hole Symposium 2021

If the US pullout from Afghanistan signalled its disinclination to be the policeman of the world at the cost of its men and money, this year’s Jackson Hole Symposium and Chairman Powell’s address mark a no less strong aversion to being the central banker of the world. That it came in the 50th anniversary month of President Nixon snapping dollar convertibility into gold is particularly apt. This post is an overview of some of the presentations held at Jackson Hole Symposium 2021. Continue reading “Jackson Hole Symposium 2021”

100 years of the South African Reserve Bank

Background

There are two reasons why I am celebrating the centenary of the South African Reserve Bank (SARB). First, I learnt my first lessons in central banking as an undergraduate in 1978 from the classic book on central banking by M.H. de Kock (see here). A legendary and longest serving Governor of the SARB, de Kock’s book went into four editions in his lifetime. It was also popular across the world. References to the Bank and its history were therefore inevitable in my lectures on central banking over the years. Continue reading “100 years of the South African Reserve Bank”

Alan Turing – The Madras Connection

What do the Bank of England, Benedict Cumberbatch, Nandan Nilekani, the Second World War, mathematical biology, Mettur Dam, the humble punkah, and Chatrapur have in common? For added measure, one might add the Madras Railway, Tungabhadra Bridge, Coonoor, the German U-Boats, cryptography, and Bletchley Park, once the top-secret home of British code breakers. The answer is Alan Turing, mathematician and philosopher. He contributed to cryptography and mathematical biology, among other subjects, and is the father of modern computer science. Continue reading “Alan Turing – The Madras Connection”

Why this blog

It was Bertrand Russell (or maybe Bernard Shaw in one of his long introductions) who wondered what an overthrown official would do thereafter. In ancient Greece, he speculated, the deposed official would round up mercenaries and attack his city state. The unseated Chinese civil servant, he added, would retire to the hills and write poetry. A retired Indian bureaucrat, I believe, would write his memoirs or set up an NGO. Continue reading “Why this blog”

Best Books on Keynes

No other economist would have probably had more books written on his life than John Maynard Keynes. I am currently reading, slipping in time whenever I can, a recent book by Zachary D. Carter, “The Price of Peace: Money, Democracy, and the Life of John Maynard Keynes” (Random House, New York, 2020). I hope to able to write a brief review of the book soon. Continue reading “Best Books on Keynes”

Andrew Bailey at Jackson Hole

Central bank balance sheet as a policy tool: past, present and future

Mr. Andrew Bailey, Governor, Bank of England, delivered the opening remarks on the second day of the Kansas City Fed’s annual Jackson Hole Symposium, on 28 August 2020. He spoke on “Central bank balance sheet as a policy tool: past, present and future”, based on a paper (see here) with the same title, prepared jointly with Jonathan Bridges, Richard Harrison, Josh Jones and Aakash Mankodi. Continue reading “Andrew Bailey at Jackson Hole”

Jerome Powell at Jackson Hole

Delivering the opening remarks at the Kansas City Fed’s annual Jackson Hole Symposium on 27 August 2020, Jerome Powell, Chair, Board of Governors, Federal Reserve System, discussed the first ever review of the FED’s monetary policy framework. Earlier in the day, the FED had released a revised Statement on Longer-Run Goals and Monetary Policy Strategy, which laid down its goals, framework for monetary policy, and would serve as the foundation for policy actions. Continue reading “Jerome Powell at Jackson Hole”

The Jackson Hole Symposium 2020

The annual Jackson Hole Symposium, organised by the Federal Reserve Bank of Kansas City, kicked off today, 27 August 2020, in what is perhaps the first instance that the Symposium is being held completely online, since its beginning in 1978. The event otherwise is held every year at Jackson Hole, Wyoming. It brings together economists, financial market participants, academics, U.S. government representatives and news media to discuss long-term policy issues of mutual concern. Continue reading “The Jackson Hole Symposium 2020”