Misreading Michael Jensen: The case of Nicholas Lemann's Transaction Man: The Rise of The Deal and The Decline of The American Dream.

The article discusses Nicholas Lemann's book "Transaction Man" and its portrayal of Michael Jensen's views on corporate governance and the American economy. It highlights Jensen's belief in the importance of capital markets in monitoring and disciplining corporate managers, as well as his advocacy for private equity and the market for corporate control. The article also addresses Lemann's criticisms of Jensen's work and his focus on the social consequences of corporate oversight failures. Additionally, it touches on the role of financial markets in economic progress and poverty reduction, as well as Jensen's shift towards emphasizing integrity as a factor of production. The article concludes by discussing Lemann's exploration of pluralism in the political and economic spheres, contrasting it with Jensen's perspective on stakeholder balancing and enlightened value maximization. [Extracted from the article]