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	<title>chetan's blog</title>
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		<title>chetan's blog</title>
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		<title>Know thy institutions</title>
		<link>http://enamoured.wordpress.com/2012/01/21/know-thy-institutions/</link>
		<comments>http://enamoured.wordpress.com/2012/01/21/know-thy-institutions/#comments</comments>
		<pubDate>Sat, 21 Jan 2012 12:48:21 +0000</pubDate>
		<dc:creator>enamoured</dc:creator>
				<category><![CDATA[serious stuff]]></category>

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		<description><![CDATA[My Environmental management professor,( yes we do have such a subject and unexpectedly it has turned out to be quite interesting) stresses the need for institutions. Thanks to him i now have an eye for the various institutions and the immense power they have. They can be a committee, an organization and the likes. In [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=enamoured.wordpress.com&amp;blog=1388641&amp;post=200&amp;subd=enamoured&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>My Environmental management professor,( yes we do have such a subject and unexpectedly it has turned out to be quite interesting) stresses the need for institutions.<br />
Thanks to him i now have an eye for the various institutions and the immense power they have. They can be a committee, an organization and the likes. In the business world, for someone aspiring to be an entrepreneur its necessary to know what are the possible sources of help available. Institutions provide such help. Example:- franchising association of india and world franshising council might have certain rules, regulations and policies which can be beneficial.<br />
Thus, be aware guys and know thy institutions.</p>
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		<title>A new discovery at the end of the year</title>
		<link>http://enamoured.wordpress.com/2012/01/01/a-new-discovery-at-the-end-of-the-year/</link>
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		<pubDate>Sun, 01 Jan 2012 02:16:54 +0000</pubDate>
		<dc:creator>enamoured</dc:creator>
				<category><![CDATA[poems etc etc..]]></category>

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		<description><![CDATA[Enough is enough. A girl can kill you by this deadly weapon called the silent treatment. Oh yes, she ignores you, no matter what on earth you do. I tried the two most powerful tools of communication viz SMS and calls, but they fetched no reply. Guys, this is so very irritating, atleast what one [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=enamoured.wordpress.com&amp;blog=1388641&amp;post=196&amp;subd=enamoured&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>Enough is enough. A girl can kill you by this deadly weapon called the silent treatment. Oh yes, she ignores you, no matter what on earth you do. I tried the two most powerful tools of communication viz SMS and calls, but they fetched no reply. Guys, this is so very irritating, atleast what one wants is a reply- but dont know what this girl lingo is, about refusing to communicate straightaway.</p>
<p>Then, I thought of breaking all the ties with her and thought of showing her my skill of using all the sleazy words in a single sentence in a very official tone and calling the relationship off.</p>
<p>A few days of struggle helped to reach a breakthrough. I discovered that my girlfriend was suffering from PAPD- Passive Aggressive Personality disorder. And i got all the answers. I didnt thought bad of her, but thought of her as a cute patient waiting to be diagnosed with all my love. I drafted a message which was the way it should be for a PAPD person. I realised how lame i was, like an economic model,I used to see only facts and numbers and no emotions. Now still i am lame but the degree is less. I tried to see and feel emotions, hers and everybody around me. Also, my belief that people should tell me face to face their emotions and their feelings crashed while the year 2011 was ending. Human relationships are all about mysterious handling and revealing of information. You have to try to know what people think, guess their preferences, stay with that person. This is waht it needs in a relationship.</p>
<p>meanwhile, the silent treatment continues, no replies but atleast now i have very little questions for her. The story goes on..!</p>
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		<title>Some learnings for me&#8230;far away from home</title>
		<link>http://enamoured.wordpress.com/2011/12/15/some-learnings-for-me-far-away-from-home/</link>
		<comments>http://enamoured.wordpress.com/2011/12/15/some-learnings-for-me-far-away-from-home/#comments</comments>
		<pubDate>Thu, 15 Dec 2011 10:58:32 +0000</pubDate>
		<dc:creator>enamoured</dc:creator>
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		<description><![CDATA[This is strange..no, its no love. It is something different. As i have spent around six months far away from my hometown and have experienced some other culture, I have started appreciating my culture/tradition/language/festival back in Maharashtra. Like previously i was completely indifferent to most of the traditins/ festivals and just thought of them as [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=enamoured.wordpress.com&amp;blog=1388641&amp;post=192&amp;subd=enamoured&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>This is strange..no, its no love. It is something different. As i have spent around six months far away from my hometown and have experienced some other culture, I have started appreciating my culture/tradition/language/festival back in Maharashtra. </p>
<p>Like previously i was completely indifferent to most of the traditins/ festivals and just thought of them as a waste of time and nothing but another holiday. I rarely listened to marathi songs, the movies or <em>nataks</em> were ofcourse a distant matter. It is not that, that i have got nay better at watching them but now i dont mind clicking on links which talk about such stuff. Also i have started liking posts which have strong local (Mahrashtrian) flavor. Also i dont mind listening to a few Marathi songs now. Wow..!!</p>
<p>I never thought that this would happen some day. It is said that prolonged abstinence from a thing can actually end up in you wanting that thing more. On similar lines, I think a shift has happened in my thought process..Thanks Kozhikode..!!</p>
<p>Better late than never&#8230;and one more thing&#8230;Marathi music is no cheap, it is rich in its own sense, you just need the ears to listen it to appreciate it well. </p>
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		<title>The beautiful game</title>
		<link>http://enamoured.wordpress.com/2011/11/24/the-beautiful-game/</link>
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		<pubDate>Thu, 24 Nov 2011 14:32:28 +0000</pubDate>
		<dc:creator>enamoured</dc:creator>
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		<description><![CDATA[There have been many wonderful moments in cricket. Here are a few:- 1. Dennis Lillee the Australian fast bowler goes out to bat with a aluminium bat at the WACA Ground in December 1979 between a match against England. He strikes a ball, one can hear the typical metal sound. They score 3 of the [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=enamoured.wordpress.com&amp;blog=1388641&amp;post=183&amp;subd=enamoured&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>There have been many wonderful moments in cricket. Here are a few:-</p>
<p>1. Dennis Lillee the Australian fast bowler goes out to bat with a aluminium bat at the WACA Ground in December 1979 between a match against England. He strikes a ball, one can hear the typical metal sound. They score 3 of the ball but Greg Chappel the then Australian skipper intimates someone to give the wooden bat to Lillee as he thinks that the ball should have been gone for a four. As this was happening the ENglish skipper complains to the umpire that the bat was getting damaged. The umpires have an intense discussion for a few minutes before they insist him on changing the bat. Lillee then throws away the AL bat with high disregard.Note that there were no rules about the type of bat should be used at that time&#8230;!!</p>
<p>2. The Longest Over:- 17 and 15<br />
Mohammed Sami has earned the ignominy of bowling the longest over in One Day International cricket during the Asia Cup match against Bangladesh in 2004, when he bowled 17 balls in one over which consisted of seven wides and four no balls.<br />
IN test cricket its Curtly Ambrose who bowled a 15 ball over at WACA in Perth vs the migthy Aussies in 1997(Note that this was a typical 6 ball over, there were times when 8 ball over was the norm in few countries, follow this link<br />
<a href="http://en.wikipedia.org/wiki/Over_(cricket)#Historical_number_of_balls_per_over_in_Test_cricket" title="hostory of overs" target="_blank">http://en.wikipedia.org/wiki/Over_(cricket)#Historical_number_of_balls_per_over_in_Test_cricket</a>). Shane Warne was facing him..!Having retired from cricket, Ambrose now plays guitar in a reggae band called Big Bad Dread and the Baldhead alongside former team-mate Richie Richardson.</p>
<p>3. Most number of ducks<br />
Ajit Agarkar score 5 consecutive ducks in a test series against the Australians in Dec 1999. There are others also who share this hall of fame with him. So dont worry fellow Indians.</p>
<p>4. Border scores a duck in his 100th test. This happens when everyone was cheering for him and all he could do was to get out on duck.<br />
Greg Chappel the infamous Australian who was the coach of the Indian cricket team between 2005-2007 has a lot of ducks accredited to his name. He once had a series of 7 ducks in a row, including both test and ODIs. However once one spectator brought a duck and placed it on the ground when chappel had arrived to bat. Bad culprits..:)..!!</p>
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		<title>Price supports</title>
		<link>http://enamoured.wordpress.com/2011/11/16/price-supports/</link>
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		<pubDate>Wed, 16 Nov 2011 23:58:19 +0000</pubDate>
		<dc:creator>enamoured</dc:creator>
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		<description><![CDATA[In the previous post we have seen how the government imposes a certain maximum price (lesser than the market clearing price). However the government sometimes wants to increase the price of a commodity. The whole agriculture policy is based on this. This is called price support. Price support:- price set by govt above free market [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=enamoured.wordpress.com&amp;blog=1388641&amp;post=180&amp;subd=enamoured&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>In the previous post we have seen how the government imposes a certain maximum price (lesser than the market clearing price). However the government sometimes wants to increase the price of a commodity. The whole agriculture policy is based on this. This is called price support.<br />
Price support:- price set by govt above free market level and maintained by government purchases of excess supply.<br />
However this imposes huge loss on consumers and also the total loss is very high.</p>
<p>Alternative:- To maintain price above clearing level govt can restrict O/P by imposing production quotas or by giving farmers additional incentive to produce less.</p>
<p>import quota:- limit on the quantity of a good that can be imported<br />
tariff:- tax on an imported good.</p>
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		<title>Policies that backfire: price ceiling</title>
		<link>http://enamoured.wordpress.com/2011/11/16/policies-that-backfire-price-ceiling/</link>
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		<pubDate>Wed, 16 Nov 2011 23:00:46 +0000</pubDate>
		<dc:creator>enamoured</dc:creator>
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		<description><![CDATA[In a competitive market prices are determined by the equilibrium between demand and supply.i.e. intersection of demand and supply curves. Sometimes the government intervene and dictate that a certain maximum price. This maximum price is less than that achieved in equilibrium. when the demand curve is inelastic i.e. it becomes more vertical then the consumers [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=enamoured.wordpress.com&amp;blog=1388641&amp;post=178&amp;subd=enamoured&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>In a competitive market prices are determined by the equilibrium between demand and supply.i.e. intersection of demand and supply curves.<br />
Sometimes the government intervene and dictate that a certain maximum price. This maximum price is less than that achieved in equilibrium.  when the demand curve is inelastic i.e. it becomes more vertical then the consumers are worse off; consumer surplus negative . No matter what the demand curve shape is producer clearly lose out.<br />
Thus in this particular case when demand curve is inelastic both lose, producers and consumers..!!POLICY BACKFIRES.</p>
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		<title>Talking about Bonds</title>
		<link>http://enamoured.wordpress.com/2011/11/16/talking-about-bonds/</link>
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		<pubDate>Wed, 16 Nov 2011 14:27:09 +0000</pubDate>
		<dc:creator>enamoured</dc:creator>
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		<guid isPermaLink="false">http://enamoured.wordpress.com/?p=176</guid>
		<description><![CDATA[understanding bonds is simple. There are three prime factors which determine the price of the bond, viz:- coupon rate, yield rate and maturity. The catch is in observing the behavior of this variables when other variables are constant. Result 1:- This result is amazing. It states that For a given bond the absolute rupee price [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=enamoured.wordpress.com&amp;blog=1388641&amp;post=176&amp;subd=enamoured&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>understanding bonds is simple. There are three prime factors which determine the price of the bond, viz:- coupon rate, yield rate and maturity.<br />
The catch is in observing the behavior of this variables when other variables are constant.</p>
<p>Result 1:- This result is amazing. It states that For a given bond the absolute rupee price increase caused by a fall in yields will exceed the price decrease caused by an increase in yields of the same magnitude. Thus, it is a convex function. Imagine function 1/x^2 in the  1st quadratic.</p>
<p>http://rechneronline.de/function-graphs/</p>
<p>go on the above online graph to see why this happens</p>
<p>Result 2:- This effect is called as the Coupon effect. It states that For a given term to maturity and initial YTM the price volatility of a bond is greater, the lower the coupon rate. Price volatility means that the price of a bond will change more if the coupon rate is lower.<br />
Graphical implication:- Convexity is how sensitive the price of a bond is to interest rate changes. In general, the higher the convexity, the more sensitive the bond price is to decreasing interest rates and the less sensitive the bond price is to increasing rates.<br />
B offers more price change and is more volatile and more risky,and thus has a lower coupon rate than A. Thus this makes B more convex than A,<br />
low coupon rate= higher convexity&#8230;dis convexity is difft than what you see, dis convexity is just the defn<br />
http://www.investopedia.com/terms/c/convexity.asp#axzz1diMpDnj8&#8230;&#8230;in dis fig. B is more convex than A</p>
<p>Result 3:- For a given coupon rate and initial YTM the longer the term to maturity the greater the price volatility. This effect is called as the maturity effect.</p>
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		<title>Ignorantia juris non excusat</title>
		<link>http://enamoured.wordpress.com/2011/11/15/ignorantia-juris-non-excusat/</link>
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		<pubDate>Tue, 15 Nov 2011 07:38:50 +0000</pubDate>
		<dc:creator>enamoured</dc:creator>
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		<description><![CDATA[This means that ignorance about law is not an excuse. Try to judge the gravitas of the statement. There must have been umpteen times when you must have said &#8221; sorry, i didnt know&#8221;. Well this is not a good defense. The law expects us to know it. It is expected of the society to [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=enamoured.wordpress.com&amp;blog=1388641&amp;post=174&amp;subd=enamoured&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>This means that ignorance about law is not an excuse. Try to judge the gravitas of the statement. There must have been umpteen times when you must have said &#8221; sorry, i didnt know&#8221;. Well this is not a good defense. The law expects us to know it. It is expected of the society to know it really really well , then only they can use it and question it. </p>
<p>This statement reminds me to know my law well&#8230;!!</p>
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		<title>Smart thinking</title>
		<link>http://enamoured.wordpress.com/2011/11/15/smart-thinking/</link>
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		<pubDate>Tue, 15 Nov 2011 07:20:32 +0000</pubDate>
		<dc:creator>enamoured</dc:creator>
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		<description><![CDATA[This comes under the realm of agency contract. The agency contract lays down certain terms and conditions, rights and duties for both agent and principal. Law:-There is a clause which states that an agent should &#8220;Not to put himself in a position where interest and duty conflict&#8221;. Case:- A principal appoints an agent to buy [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=enamoured.wordpress.com&amp;blog=1388641&amp;post=172&amp;subd=enamoured&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>This comes under the realm of agency contract.</p>
<p>The agency contract lays down certain terms and conditions, rights and duties for both agent and principal. </p>
<p>Law:-There is a clause which states that an agent should &#8220;Not to put himself in a position where interest and duty conflict&#8221;. </p>
<p>Case:- A principal appoints an agent to buy a house for him. The agent searches and then comes across a house, so beautiful that he himself wishes to purchase it.<br />
This would be illegal according to the above mentioned law.</p>
<p>Way Around1:- people are really smart in this world. The agent then establishes a company which requires atleast 2 members and becomes a majority stakeholder. And proves that it is the company who has made the purchases as per the business entity concept, individual and company are different.</p>
<p>Way around2:- this one is smarter. A person establishes a company. He doesnt becomes a shareholder, appoints his 2 servants as the founder members. Lends cash to this company for its operations. The company then with this cash purchase the house. Now the company cant repay the debts of creditor. Company defaults, the lender takes possession of the house.</p>
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		<title>Paradox of thrift</title>
		<link>http://enamoured.wordpress.com/2011/11/14/paradox-of-thrift/</link>
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		<pubDate>Mon, 14 Nov 2011 18:05:39 +0000</pubDate>
		<dc:creator>enamoured</dc:creator>
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		<description><![CDATA[This is an interesting case, which points that savings can actually not be good for the economy and for you on the whole. Y=C+I+G =C0+C1(Y-T)+I+G =C0+C1Y-C1T+I+G =&#62;(1-C1)Y=C0+I+G-C1T I=S+T-G&#8230;..substitute the value of I+G as S+T =&#62;(1-C1)Y=C0+S+T-C1T S=-C0+(1-C1)y-T+C1T S=-C0+(1-C1)Y-T(1-C1) S=-C0+(1-C1)(Y-T) if consumers decide to save more i.e. to consume less(C0 less), negative C0 means smaller decrease. Also [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=enamoured.wordpress.com&amp;blog=1388641&amp;post=168&amp;subd=enamoured&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>This is an interesting case, which points that savings can actually not be good for the economy and for you on the whole.</p>
<p>Y=C+I+G<br />
 =C0+C1(Y-T)+I+G<br />
 =C0+C1Y-C1T+I+G<br />
=&gt;(1-C1)Y=C0+I+G-C1T</p>
<p>I=S+T-G&#8230;..substitute the value of I+G as S+T</p>
<p>=&gt;(1-C1)Y=C0+S+T-C1T<br />
S=-C0+(1-C1)y-T+C1T<br />
S=-C0+(1-C1)Y-T(1-C1)</p>
<p>S=-C0+(1-C1)(Y-T)<br />
if consumers decide to save more i.e. to consume less(C0 less), negative C0 means smaller decrease.<br />
Also Y decreases. so the net effect would be ambiguous.<br />
But if we see I= S+ T-G<br />
S doesnt change in this case and attempts to change S result in a decrease in Y, output. This phenomenon is the paradox of thrift</p>
<p>An attempt by the economy as a whole to increase aggregate savings not only will not succeed, but may lower aggregate output, income and employment.  This is because increased savings at a given level of aggregate income will mean decreased consumption.  Thus a smaller marginal propensity to consume will reduce the stimulative effects of investment and other spending.</p>
<p>If, however, the increased saving is the result of higher incomes, then that is a different story.  If income goes up, consumption and saving both go up.  But at a given level of income, increased aggregate savings can throw the economy into a recession.  Therefore, a policy to increase growth by increasing savings has it backwards: savings will increase as a result of growth.</p>
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