Also: Twitter review, election results, and Netflix with ads.
Good morning.
One of the most unusual experiences of my academic years was sitting in a large lecture room at the London School of Economics with roughly 100 students from all over the world and listening to weekly lectures on macroeconomics from a pair of newlyweds: future Nobel Laureate George Akerlof and his bride, Janet Yellen. Akerlof’s morning lectures were always—at least I assumed—brilliant, but often baffling. Yellen would arrive in the afternoon and soothe our hurting brains with lectures that made the most convoluted theories of Akerlof and other economists comprehensible.
What I never imagined in those days was that Yellen would become the first woman to chair the Federal Reserve and then go on to be the first woman to serve as Treasury Secretary. But in retrospect, it makes perfect sense. Her brilliance was the ability to explain the most complicated economic subjects in a way that slow-witted students—as well as politicians and policymakers—could grasp.
Yellen’s story is captured in a new book out this week from my former colleague Jon Hilsenrath. I recommend it, not just as a treatise on economic policy, but as the portrait of an extraordinary woman and an extraordinary relationship. Yellen never again “team taught” with Akerlof. But in Hilsenrath’s telling, the two have had a life-long creative cross-fertilization of ideas—a tight intellectual circle that later expanded to include their son, Robert—that ultimately provided enormous benefit to the country and the world. As Hilsenrath puts it:
“Yellen was motivated, more than anything, by an almost obsessive desire to examine questions fully and get as close as she could to answers that stood up to thorough and honest analysis. She adapted as circumstances changed and updated her beliefs when they fell apart under serious scrutiny…Yellen saw in her work a duty to contribute to some larger purpose, like a lighthouse keeper watching the shoreline. She didn’t set out to break gender barriers or win top jobs. When she leaned into debates, it wasn’t to be heard over anyone. It was usually because she thought her arguments were right, and she had the conviction and the knowledge to defend them.”
Yellen’s story remains unfinished. The policies she championed certainly helped boost the economy, but they also fed inflation. The costs of combatting that inflation will have to be factored into her legacy. In any event, her role in the making of modern economic policy has been hugely consequential.
A final note: One of the interesting revelations in Hilsenrath’s book is that Yellen has maintained a continuous and productive dialogue with her rival for the Fed job—and her sometimes critic—Larry Summers (who will be speaking tomorrow at the Fortune CEO Initiative.) If more in Washington could embrace the virtues of civil dialogue despite personal and policy disagreements, the nation would be better off.
More news below. And check out the interview Ellen McGirt and I did with Progressive CEO Tricia Griffith on our Leadership Next podcast, available on Apple or Spotify.
Alan Murray
@alansmurray
alan.murray@fortune.com
|
|
|
Leaders Follow Fortune - Be Better at Business for just $1 Subscribe to Fortune.com today and unlock market-moving business news, our iconic lists and rankings, including the Fortune 500, exclusive investment guides and more. Try Today |
|
|
Twitter review
The U.S. Treasury Department is reportedly considering a probe of Elon Musk’s now-closed Twitter takeover, on the basis that he has ties to foreign governments and investors. According to WaPo, the terms of the Twitter deal would give large foreign investors access to “confidential information about Twitter’s finances—and potentially its users.” Washington Post
Election results
As the U.S. gears up for mid-terms, election news has been pouring in from the rest of the world. Brazil: Jair Bolsonaro still hasn’t conceded his loss, but has signaled he will cooperate with the transition of power to leftist rival Lula. Denmark: Incumbent Prime Minister Mette Frederiksen won enough seats in a general election to form a new administration. Israel: In the country’s 10 millionth (OK, fifth) election since 2019, former PM Benjamin Netanyahu appears set to return, though ballots are still being counted.
Netflix with ads
Netflix will this week roll out its “Basic with Ads” service in a dozen countries, with the U.S. launch coming tomorrow. Advertisers are in, but Netflix is still yet to finalize revised licensing deals with a host of studios to allow it to place ads against their content. Wall Street Journal
|
|
|
2022 Deloitte holiday survey According to Deloitte’s 2022 holiday retail and travel survey, consumers will be finding ways to keep the holiday spirit alive despite economic pressures. How might you prepare your company to engage with consumers’ evolving spending priorities this year? Explore the findings.
|
|
|
Sign up for The Trust Factor ✉️ The Trust Factor is your weekly guide to understanding the new KPI business leaders need to succeed, from gaining consumer confidence to mitigating digital risk. Get it delivered to your inbox |
|
|
Thanks for reading. If you liked this email, pay it forward. Share it with someone you know. Did someone share this with you? Sign up here. For previous editions, click here.
To view all of Fortune's newsletters on the latest in business, go here.
|
|
|
|
 |
