Lessons of Leadership - You Stop Doing What You Love

The first lesson of academic leadership is that it takes nearly 12 months to catch up on a large backlog of research. This is my reason (excuse) for not blogging since I stepped down as Head of Queen's Management School. When I stepped down, I indicated that I would write a series of posts which reflected on my time as Head. However, I underestimated the sheer effort it would take to kickstart the various research projects which I was involved with.

If you are thinking of taking on a leadership role in a university, it will have a substantial effect on your research productivity. I went into the role knowing this. The way I coped was to see my research as a hobby - something that helped me relax and that I tinkered at on Saturdays and in my spare time. I also went each summer to Cambridge MA to get the head space and peace to work on research.

If you take on a leadership role in another type of organisation, you will be managing and leading a team. Your time will not be spent on your expertise - the thing you have spent years learning to do. You will need to stop doing what you love. I became an academic to research and teach, but when I became Head of School, I had to stop doing these things. I had to devote myself to building a team to deliver the objectives of my School.

The Economics of Global Warming

The Berkeley Earth Project , an independent study of global warming, has found that the earth has become a degree warmer over the past half century. However, the statistical uncertainty surrounding pre-1920 estimates makes it very hard to say much about long-term trends - click here for graph . This is one of my concerns with the global warming debate - we simply don't have trustworthy long-run data which looks at temperature changes over the last millennium (or two). My second concern with the global warming debate is that it is very hard to prove any sort of casual link between global warming and human activity. The scientists may be able to show correlation between global warming and our production of carbon dioxides etc., but correlation is not causation. My third concern with the debate is that those who are sceptical or agnostic are stereotyped as flat-earthers or intellectually-challenged crackpots. This only stifles debate and the progress of science itself.

Boom and Bust: A Global History of Financial Bubbles

Boom and Bust: A Global History of Financial Bubbles, co-authored with my colleague Will Quinn , is forthcoming in August. It is published by Cambridge University Press and is available for pre-order at Amazon , Barnes and Noble , Waterstones and Cambridge University Press .

The Failure of Herstatt Bank

As an undergraduate, I was taught about the failure of Herstatt Bank in 1974 and Herstatt risk. This bank was only the 35th largest bank in Germany at the time so why would anyone be interested in studying its failure? Herstatt failed because of its involvement in risky foreign exchange business. When it closed its doors on 26 June 1974, counterparty banks (mainly in New York) had not received dollars due to them because of time-zone differences - this is known as settlement risk. The cross-jurisdictional implications of its failure resulted in the Bank for International Settlements setting up the Basel Committee on Banking Supervision and Herstatt's failure was a key reason for the establishment of real-time gross settlements systems, which ensures that payments between two banks are executed in real time. The Bank of England's Ben Norman has an interesting post on Herstatt over at the Bank's new blog ( Bank Underground ). As well as giving an excellent overview of

Finance: Past, Present and Future

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