My Daily Moo

kidi_kiut

Have you watched Meteor Garden (taken from hana yori dango, one popular manga in Japan), taiwan version ?? Often, Tau Ming Se in the drama said that "what is the use of apology, if there are police out there??" This character in the movie believes that any conflicts could be settled in police office, if and only if the police system is trustworthy. Whenever the axioma is not fulfilled, ultimately it violates the belief of the citizens to the police system (recalling the WARP and SARP in microeconomics, in chapter 7 Revealed Prefered).

What has been shown in televesion in Indonesia recently (even until last few hours, n will be continued within next days), telling us that the credibility of police organization is in stake. The panick movement of the police by arresting Bibit and Chandra (leaders of Corruption  Eradication Agency), exhibit inconcistency of commitment in eradicating corruption in Indonesia.  Despite the possibility that Bibit and Chandra could be guilty as well, our confidence on police system is declining due to unreasonable decision.  The high level of conspiracy by certain people who seeks for individual advantages creates a bad image for police organization.

This uproar should become the concerns to all of us due to a possibility of a chaos in beuaracracy, between organizations. Such case in point has been displayed by the conflict created simultaneously between Police and Corruption Eradication Agency. Even, the attorney officers have an important part in worsening the beuracracy image. It seems that people have no place to turn to. Afterwards, it would create a bad impact to the economy due to the lack of confidence to public services. Surely, we wont this to happen.

Having a heavy task to generate a right decision is on the hands of our President (and their team). How far our country will go and what would our country be like depends on the decision made. Let's just hope that our president is not part of the consipiracy as been mentioned in the tape. However, it needs extra effort, energy, and time to make everything settled as people expect. It is really a hard job. Thus, we all should support and make a move to have a better future.

Above all, the root of this problem is the mentality. Nothing can compare to worse mentality which creates a hell future. In order to avoid it, we should start by edifying ourselves.

Hehe ... so start from now 3, 2, 1 ! gooo ... woooooooooooooossttttttttt ....

(stress mode on)

*empowering her self for noticing her exam result

kidi_kiut

It starts from macroeconomic test, one of the question is about rational expectations from the contractionary monetary policy. At that time, i had this mental block like the previous day when i had microeconomics, a disease that would start ruining my future, and should be cured asap, lol. Therefore, i cant think logically what i should do with the question. Afterwards, when i ended up discussing it with one of my brightest friends in the class, at least i got some hints of what i should answer actually. However, the exam has been over. Now that i can do that learning from mistakes.

Yeah, that's what history always offers. History provides hard lesson for some of us. So is a country. History becomes an important element to make a contingency plan so that unexpected thing could be anticipated. Regarding to my experience in the past (recent past : mid exam), i could actually calculate my ability in facing the exam. Indeed, i could make a strategy, good one, in order to have optimum expectation.

What Lucas proposed in macroeconomics works the same way. However, when he applied it in macroeconomics, there is important assumption that the outcome actually do not differ systematically from the market equilibrium. Of course, minimal error in making prediction is other significant variables so that rational expectations work.

Recalling the problem that i had in macroeconomics, i would say that the focus is the expected price level that the wage setters set. The answer of my friend that i just mentioned is similarly like this. The wage setters would adjust the expected price level so that the nominal wage satisfied the employees. In relation with the contractionary monetary policy, a consequence generated because of the policy should have been calculated by the wage setters, such that the in the medium run, wage setters could have just set the price accordingl to lower level but goes equal with the price level itself. When it turns out that the monetary policy generates a new level price, lower one, but has no influence in other variables such as unemployment, level of output and interest rate, the wage setters should have expected it.

As a conclusion, rational expectations is required before applying strategy. It is not just about learning from the past, but how to make beneficiary from the past into certain calculation that would support rationality itself. Quoting one great mean in the past, Cicero, "History is the witness that testifies to the passing of time; it illumines reality, vitalizes memory, provides guidance in daily life and brings us tidings of antiquity". In all, history always works for rational expectations, but it depends on how we use it.

ah too bad, i make my exams as a misery history. Hope in the future, rational expectations would help me make better history. Have you make a history today?? a worth one??