If there is one thing worth committing to, it's your education. Whether it's doing well in school, reading a new book, or learning a language, taking the time to sharpen your noodle is the wisest investment you can make.
"hi praneeti!! so today was shit in terms of padhai like literally but okay not like phone pr lagi rahi and all today was dussherah and i had fun went out enjoyed myself...subah i did revise thodu sa...but okay no i didnt do anythign near 14 hrs...tomorrow is going to be so much better ik and today was a great refreshment...kal se only a week more and then my exam...gosh...anyways...ttyl..bye!"
"Completed approx 3 hours of methods today finished off all Vcaa exams in prep for tomorrow edatlas exam 2. Doing heavily log booking and refining all topics covered this year. "
"soo today is 9 day before exam and we had to go to school to do the admit card thing and yeah wtever but we ended up doing a lot of tp and i hated that and i got frustrated...wtever...but i started morning with one goal of revising all my science and i did that with one hour in hand which i shall be using as time to do some numericals just some random ones for sake of revision or maybe if i get tired witht hat then watch any lecture maybe continue the one i left yesterday but that's cool...ik i didnt complete 14 hrs not even close including a movie with family which stands the greatest reason for my dissatisfaction but keeping aside the regret i think the main motto is to do what i wanted and i completed that motto so i will consider the task completed also smart work rules over handwork...ik sounds like excuses idk if this is excuse or not i am not in right state to judge myself accurately so i will do what my heart says rn is to mark the task as done! Goodnight "
"Read "Improving Monetary Transmission through the Banking channel : The case for external benchmarks in bank loans" by Viral V Acharya.
This delved deeper than the previous paper and aimed to examine the problem : Why do policy rate cuts by the RBI not translate fully into Banks' lending and deposit rates ?
The reasons could be many but underlying them all lies the development of the lending rate systems in India. From the PLR of 1994, BPLR of 2003, Base rate system of 2010 and then the MCLR of 2016, all these lending rates suffered rigidities and hence banks took advantage of it, often at the expense of the borrowers.
These rates were mostly internal in nature, whereas developed economies use external benchmarks as these are beyond the influence of Banks and cannot be used for their advantage. India is characterized by a system of Internal benchmarks.
Now an external benchmark is not sufficient as long as banks get to decide and change the 'spread' over the benchmark. The spread is the risk that the bank undertakes and this is in addition to the benchmark rate. There have been several cases where the bank adjusted the spread to offset changes in the MCLR !
The RBI recommended that this spread over the benchmark rate be constant unless the borrower's credit assessment changes.
However, Banks raised several, logical issues with the recommendations which were addressed adequately.
Also, other financial intermediaries operating in the economy such as NBFCs, now growing in number and significance, too need to regulate their rates in tandem with the policy rates and these are aligned with those of banks. An internal study group was constituted to look into these matters.
In conclusion, the reason why transmission is so important is that for a percent change in the policy rate if the banks do not pass even, say a half percent then the changes in Monetary Policy has to be more dramatic ! implying more significant rate cuts or hikes and this only adds more 'jerk' to the economy. The internal benchmark rate did not do much to improve the transmission mechanism over the years.
The external benchmarking case has therefore been made."
"So i am writing this when i have done 12 hrs of study but technically that's same as 14 as no one damn studies 14 hrs straight breaks included..wtever i am shitting...anyways i am really really tired rn had classes did them good and solved papers went through them sat down ones to go through paper even when each inch was begging to get up so yeah that was good wake up not on time but not one sec was wasted so i would say that today was accomplished also i did study in morning as well as evening feel like dying and gave all the correct ans...anyways its enough...fuck off"
"Hi All!
I overshot my goal this week - 15 hours + 2.5 hours of class. After speaking with my instructor, I'll edit down my weekly commitment to 12 hours a week for 10 weeks."
"1st day of commitment is the easiest when the motivation is high obviously...new app new excitement...anyways morning started bad got late in waking up like around 6:30 then 7 baje se i started to study then my parcel came and i spent hours trying to perfect it out and i got depressed cause damn it didnt have return policy and it just didnt work so wasted initial day to learn to make it work which i did end up learnign but tbh it was not worth it then i tried to find something to distract me and when i say that i always mean youtube...ughhh but okay i coulnt binge watch a lot cause yeah classes...classes mein initially i was facing concentratign issues but then i became most active learnt to calculate ph and all also aaj classes ke beech ka time when i usually used to waste time i didnt then chem ki class mein i learnt to calculate ph and physics ki class mein i asked ntse ke ques then i reall ALL chapters sir gave me to which felt great i have made allt eh notes and all and i revised scientific names and wrote the molar maalse that iwas postponign so in short morning was bad but evening was good and thats the point ussually my days go like this...i wanna change it...that one half if is productive other is not...i am rustrated with this behaviour but okay fine...thats it time to sleep tommorow at 6 dot"
"Today, re-read all of the three papers I've read so far. Had to run a regression model in R but the technicalities of the language code are too complex to understand, and so what would take a simple hour or so took more than 4 hours to do. This took much of my effective time.
But the regression function estimated was related to Monetary Policy - how does changes in increase in the money supply explain changes in Inflation, and the second regression was to estimate a simple money demand function.
Even if one knows the theory properly, while testing it out there is no guarantee that it will work out. Also, there is a major problem of knowing which dataset to take and from where.
The methodology part is gonna be even tougher I guess. I thought having a strong theoretical foundation would suffice. Sigh. "
"Revisited Viral Acharya's speech transcript on the Monetary Transmission Mechanism given at TIFR.
Reading the paper again, after a long time, I was able to see the underlying issues with better clarity and comprehension.
What surprises me is that before embarking on this dissertation, I had the exact same set of questions regarding Monetary Policy Transmission. How did the Central Bank policy rate transmit into the Banking sector (for lending and deposit rates) and ultimately impact consumers (output and inflation)
Viral Acharya gives an excellent first principles approach to the topic and the problems at hand, takes one channel (the Bank Lending channel) and then analyzes its historical developments, the changes introduced, whether these changes resulted in any significant improvements or not, and how to go ahead.
What's more is that the analysis is presented in the Indian context and so is easy to grasp, especially the terminologies.
In addition to prior understanding of the topic, I realized this time that banks' rates have a significant impact on the transmission of Monetary Policy. The deposit rates are rigid, and not often revised and so any changes in MP are not adequately reflected. The lending rate (say, for loans) is based on a floating rate pegged to a benchmark rate and this one would think is not as rigid as the deposit rate but there's altogether another problem to it which is that of the banks setting their own risk spread premium on top of the benchmark rate. And this spread varies and is often hedged to work towards the bank's advantage, nullifying the transmission process.
There's another issue on the Benchmark rates which is too much to discuss at length here.
This re-reading has helped me solidify my interest and conceptualize an objective for the dissertation, along with additional reading material such as reports by RBI."
