Macro Policy Implications of Behavioural Economics

Optimism and pessimism are both contagious states of mind. Was reading a paper in the EJ of the first quarter and suddenly fell in love with Economics all over again. That's good news right?! Hopefully!

Just wondering if we can make policies other than just monetary and fiscal based on this theory. Seems it could work...

Open to discussions, in fact looking forward to!

Economics: A Fairy Tale?

The most striking similarity between Enid Blyton's fairy tales and the Classical Economists' theories is that there is no role of money in the system!!!

You Know You are an Economist When

• You continually include "optimize", "budget (set)" and "limit tends to" in your vocab without even realizing it
• You trying figuring out if you have smooth, convex preferences
• You wonder if and how much to save, keeping in mind "The Paradox of Thrift"
• You make Economics jokes (you reach heights when you can incorporate "neighbourhoods" and "open balls" in the jokes- if you don't understand this, don't bother, you are safe!)
• People around you understand your jokes or give a puzzled frown
• You assume and predict
• You claim to understand most phenomena in the world with an "epsilon" error term
• Epsilon is sufficiently small to suit your model but big enough to create a major disturbance
• Data doesn't suit your fancy models
• "In the Long Run we are all dead!" is knowledge to you!

P.S. This list is not exhaustive, suggestions and additions are welcome

Pinged from my blog.

"Peace" of Advice

If you don't want to be a rebel don't go to Presidency. If you are a rebel, try not doing a Masters in Economics.

P.S. Life is more important than your CV- so I'd say go to Presi anyway!!

Ramblings

Why do people want to believe in a certain utopia that even they don't understand? Do Presidentians have this trend or is it only my strange bro who's a pseudo-antel?

P.S. Am a Keynesian n yes, Rational Expectations doesn't make sense!

General Equilibrium: Fair Distribution of the Soul

If we believe that a soul is eternal and exists forever, how do we account for the ever increasing population size? Are the souls being split and therefore souls in people are tending to zero?

Question that recurred to me in today's Micro class- fair Pareto Optimal distribution anyone? ;)

P.S. The concept's taken from somewhere- don't remember the author or the book.

Higher and higher with Macro

"Economic Advisors to the Prime Minister are useless!!"

That's precisely what our Macro Prof. and Sergant and Wallace would have to say. ;) :p

A Little of Life at this End

After 14 days of working days at a stretch our prof. says "Holidays are bad, they screw your routine. Discipline is important!" And hence on the 15th day i.e. on Holi, we got homeworks which we were supposed to schedule around our class timings.

Microeconomics is mostly math... oh am sorry, it's all math. I quote our prof. "Don't ask me for economic intuitions!"

Econometrics II - "Unless you go through the papers in this area, you will not get the hang of it. Doesn't mean if you read them you will or I know!"

End of an Era?

A chat transcript from my Gmail chat history:

we cared abt "silly" politics

strange ideas

surreal street dramas

presi 2 us wasnt a college, it was an experience, an idea that we all cherish

how i wish i could go back, NOW!!!

Presi Days- Looking Back

After a year of anxiety, 2 months of touring the country, a day of heartbreak and 20 days of sheer depression, here i am, scribbling something perhaps rather immaterial on a blog page where i thought i might be ashamed to write on again...

It's been about 3 months since i left home, 2 months since i left calcutta for the place i really really wanted to be in. Presidentians dream big... i dunno if it's talent or just luck that most of them end up to be pretty well settled.

A month before coming to IGIDR, Ritika and me were at HCU- awesome campus, perhaps good teachers but i hated it there. Dunno why exactly- there were too many reasons. But it was mostly i guess the fact that the people around lacked the antel way if dressing that we are used to. Well, don't get me wrong- i just mean to say, irrespective of the pathetic sense of fashion we Kolkatans have (ya now i can say that coz am in mumbai n in a slightly higher fashion plane), there was a charm in the way Presi people carried themselves and that wasn't present in even 1 person out of a batch of about 80 there. There were people conversing non-stop in Malayli n Tamil and yes, no telugu. The food sucked big time... In short, you find nothing good when you are in a sad set of mind.

Then on one of those lazy yet tired worn out yet karenge ya marenge afternoons, IGIDR happened. Perhaps you all know this is where i wanted to come to coz i thought the academic pressure would be the least here and the corporate jobs really good!!

It's been 2 months, am where i wanted to be, involved in the Placement Committee, perhaps doing what i would wanna do a year back. But still there's a void. When i talk about Marx, people don't argue with me. When a Prof cracks and intelligent joke, Ritika and i are the only people who laugh and get stared at. The innocent jokes which seemed hilarious when Dipu narrated them now seem to be a pain. Some sarcastic comments that i used to expect people would understand are either not taken no note of or are taken in a straight way. Mind you, i'm in one of the country's best academic institutes... still wondering what academics really counts for.

At times i miss the presi politics, not coz i wanna make a political career but coz i wanna know more n the whole learning seems so incomplete without Ritam da's cool way of explaining, Rakesh da's hyperactive self or Sayantan da's passion in whatever he said with Dipu cracking a suicidal joke in the middle of no where.

Presi happens just once... Presi is fun, Presi is home... it's where we belong- perhaps people call me a pseudointellectual snob here but for once am being true... very very true. It's in our blood, we can't do away with it... once a Presidentian, always a Presidentian

Ab apni man pasand caller tunes bilkul muft...!!!

Morning 4.12 am: Dhol baje! Dhol baaje.. Range barse...  Call kijiye 5123444 pe aur apke man pasand gana set kijiye free mein! Call charges Rs 6 prati minute!!

An exasperated me calling the customer care:

Me: Hi! Could you tell me how to stop spam calls. I get calls asking me to subscribe for callertunes all through the day...

Customer Care Rep (CCR): Shoo ma'am you dont want caller tune calls?

Me: Exactly

CCR: Toh note kijiye "START DND" and send to 1909... Will take 45 days to get activated. 45 days baad aapko koi calls nai ayenge!

Me (bemused at "koi calls nai" but supressing) : 45 days!!!! You know that's 1.5 months!!! :O

CCR: Yes maam

Me: No other way?

CCR: Yes maam

Me: Yes?! You mean no.. ok. If I set a caller tune would you stop disturbing?

CCR: No Maam!!

This college speaks!!!

Reminisicing Presi Elections

I don't care anymore who says what... For the n-th time in Presi, today I feel liberated. I won competitions writing about college politics but it's so strange... 3 years ago I was a different being! And all these incidents relate to my best friends... Strange but true!!

1st year college elections:

• Aritree din't have her id card and SFI declined to recognize her as a college student.
• I saw Scottish people climbing the Presi main gate into the college while the counting was on. It was scary when Pushan da n Sourya da climbed up the gate n threatened everyone...

2nd year college elections: (By now I was confirmed for IC.)

• Raj da was house arrested.

3rd year college elections: (By now I wonder how how how we still don't have a good opposition in the state... enough of these pseudo communists!!! Enough of their strange manupulative dictatorial regime!!! x-( )

• Arindam gets a threat call- if he comes to vote, consequences will take a toll on him!!!

I keep telling people, I believe nothing other than what I see. But why is it what what I see is just the violent side of SFI n never IC?? Chitra says coz of imprefect information... My whole house is red!!! They have best ways of convincing me, giving me proofs or even narrate incidents when IC went so dirty. I wanted to know!! I went to them! I talked to them!!! They couldn't say anything, couldn't prove anything. They just had said "Why is IC not taking steps in having the xerox center reopened?"

I went to Sayantan da (our G. Sec then for those who don't know.) He showed me a paper cutting of the tender ad that had come out n SFI wasn't even informed of it!!! What kinda opposition are those who dunno what the party in power does????


Finally before leaving college, whether IC wins or loses this election... I really want an answer!! What kind of politics does SFI practice?? Just abduction n attempt to win? (Hats off to your organizational skills though.. but then that has to be given the pyramidal party structure!) For once.. for once lemme believe in what I believed before I entered Presi- "Who's IC? SFI is the only option to choose!!"

Why Recessions are not the Best Times to Marry

1. You dunno when your partner is kicked out of the job and the poverty line seems attainable.
   
2. You dunno the real income of your partner till better times- adjusting the inflation figures to recession situations are not a good idea!!
3. Bullion markets are on a high- so you can never satisfy your in-laws with gold. ;) (Besides, why lose out on something like more gold when the prices are low?)
4. If you get married during a recession and have kids during a boom, by the time they are 4-5 years, we'll reach another recession- could reduce the generation gap...
   

The other day someone sent a sms "The recession has struck so bad that women are now marrying for love." Here's earnestly hoping that you girls (n yaa boys too), know what to do with it!!

Child Abuse- A Reality Check

When I read about so many writings on Child Abuse, all that I find missing is the soul. It is indeed easy to talk, easy to be angry, easy to loathe the abuser or be sympathetic to the victim. But what it is not easy to be is to think from a victim’s shoes. When we talk of child abuse, we say we feel for the child and what impact it will have on the innocent heart. But what I care more for is what happens to the victim in future…

The worst part perhaps is that those who have never been victimized are the ones who write about it and the victims are so withdrawn in to themselves that they find it tough to come across and pen down the violence. Recently I had read a book, Bitter Chocolate by Pinki Virani. I could not read it through… in fact the authoress had mentioned particularly that victims of child abuse should not read the book. It indeed can bring back a lot of tormenting memories.

Another very common thing I find is when victims write about their own experiences, they impersonate and try to put the hurt and the torment as far from them as possible, preferably speaking in the third person. Nothing wrong in that- I understand no one tries to remember such experiences. But what bothers me is that they are ashamed to come clear of it in public. My question is- why? If a child faced abuse, it really was not his/her fault! The abusers search for preys within the family or neighborhood. And how can you possibly suspect everyone whom you are close to? Perhaps you should… I definitely would. But it really is not very plausible. Even if it is anyone’s fault other than the abuser’s, it perhaps the child’s parents or guardians! So, there is no reason why you should be ashamed of yourself!

This again reminds me of the hypocritical society that we live in! When we hear of a child victimized, we sympathize… These are not cases where sympathy is needed- these are cases where you should empathize, be understanding, shower a little love. But where is that? We deliver long speeches, we loath abusers, we freak out- but how many of you would actually think of choosing a life partner who has been a victim of child abuse? A hundred thoughts start creeping in- he/she can never be your “ideal” life partner. Are you living in an ideal society by the way?

Finally and most importantly, please do let the victims grow… evolve within themselves, help them realize they are normal, they were unlucky, but life will not coagulate for them. Most of the victims find it difficult when it comes to relationships- insecurity and fear are only very common symptoms. But it is your- all of our duty to make life as normal for them as possible. Being normal does not mean sympathizing! Being normal means how you would be with me if you had no clue that I was a victim of child abuse… Trust me, that is all that they need…

Investing in the Stock Market

So you love making money?! Nothing wrong, in fact everything is right!! Everyone looks at making money from the NASDAQ. And that is why you should be careful with your hard earned money!

It is good that unlike many people in the developing worlds, you do not think that stock markets are a gamble, but at times, you have to learn to be a little risk averse from them. With the American economy slowing down considerably, it is of prime importance to know which the safer stocks are that you can invest in, in spite of their prices being on the lower end.

Portfolio analysts are making a lot of money these days. And why not? You are paying them to let them take a call on your behalf. In fact that is a good thing that you do- a lot better than losing up money. But for those of you who want to handle situations alone, we make some noteworthy points:

 Try not to buy and sell at the very opening of the market. The market is in general a lot more volatile during the first thirty minutes of trade.
 Do not buy a stock unless you are sure of when you want to sell it.
 If you are in the market, you should know about having margin accounts. However, having such an account and using them are two different things. Try not to use them unless you know how to handle them and keep yourself out of trouble.
 Stop loss orders are a must if you do not want to lose money. Keep increasing the limit of the stop loss as you gain more money and experience.
 Consider all the external factors that could affect the market. The recent earthquake in China or a flood in some state of India can affect the market rates in such a globalized market. Infact, China and India are two economies you should keep note of in the view of emerging markets.
 With the US economy in a slump, it is advisable to invest in foreign markets that do not have much to trade with the US and will be the least affected and do not have much of trade with the US.

As a final note, as they popularly say, both bulls and bears make money, only the hogs lose out! So, do not hog… money is sure to flow in if your basics are right!

Light, Camera n confessions...

Well... as i suspected, i had to delete this post!!! Wasn't really the best of presentations... so don't worry!! :)

Evolution... the dependent way!!!

Adam and Eve had 2 sons. Now don't ask me their holy names again.. they are not so important that i of all people should remember them!! Nah, if you are wondering this is a story about Christian morality, you are very sadly mistaken... i never find morals in it.. but then that's another story!!So Adam and Eve had 2 sons. I was discussing this with a friend and the obvious question arose. Then how did it continue? How did they have kids? Well... we are not perverted... we don't talk of incest of "moulla FUKir"-s. We were science students!! So, here was my friend explaining evolution.. (who the hell cared for Darwin by the way?) Adam and Eve's sons found themselves lady monkies and married (since we are kids we don't go in to details!! ;) and thus came our favourite monkey... Andrew Symonds!!Is that racially offensive? Well we just said what they wanted to hear... black moneys or white monkeys.. Mr. Symonds, we respect you... you have indeed stuck to your roots... i perfectly understand that since you lost your tail, branches are no longer a good place for you!!! :PSo, isn't that simple enough? Evolution simplified... and if you call me a racist... ummm well i hate most of the whites, so am definitely a racist... but i respect all of them, how they stick to their "roots"!!P.S. Since i started this with Adam and Eve... i'll come back to Christianity on some other blog.. till then learn how to escape perversion!! :D :P

Confusion?? Errr... not really!!

"no, just awfulyl sad
its like
sometimes
you want to be a criminal suppose
and then you meet someone
adn all ambition goes to hell
and all you want is to have six kids with him
the eternal topic of you have met the hero, and the hero gets the girl"

Now that's what our dear miss ad-libber said while having a chat with me!! Who says only guys are despos?? Seems like am "still" on the other side of the planet when i meet such "desperate girls". Wonder of wonders they call me despo at college!! Seems it's an opposite world.. am happy with 1 guy and am a despo.. these girls romance 3 guys under the moonlight and don't fall in love!! If Deepanjan is reading this, i want an explanation sir!!!

Why Un-presi-dented?

The only reason i hadn't written anything on this page till now, was because my mind goes blank when i try writing "un-presidented". Well, may be it's time i should tell all my friends here why i chose this name... if anyone of you have any reservations against this, please do feel free to suggest alternatives.

With most people out here, from what i believe we all call the heaven on earth, Presidency College... i guess the name suggests a bit of presi feelings in it. I had always wanted to think "un-presidented". It's simple enough. As Arindam has mentioned in his earlier post.. want to think what i want to... be it right, wrong, whatever!! No one out here will "preside" over our thoughts atleast!!

And people.. don't you think this is the very essense of our college?? Think different... that's "un-presi-dented"... Presi dented in us..

Am i talking rubbish.. non-sense?? (That's what i always do by the way;) But as i told you.. my mind goes blank when this blog is concerned. I have too much to say but dunno how to string in the words... will try another time!!

Till then... should i ask for blessings from a certain blog author? ;) Miss Stinky should know what i mean :P