The fundamental principle is that the tone of good governance should be set and come from the top. It should remain the highest priority as it emphasizes the importance of having “fit and proper” standards for individual board members. These standards, we believe, should put as much weight on integrity, as on knowledge, expertise and competence.
The open triangle labeled “2009” in the upper left of the figure shows an increase in the unemployment rate in that year well above the one implied by the contraction in real GDP and Okun’s law.