Discount rate has changed! Up to a 50 bps variance from the Fed Funds rate, so now at .75% No real effect – just makes it more expensive for banks to borrow from the Fed, and not a lot of that is going on.

I know – it has been a while since I’ve actually posted.  Slowly the writing bug has crept up.  Currently at the beautiful Boston Public library, the planets have aligned for some decent thought to brew.

Why, you may ask, am I at the BPL?  Well, if you’re curious, I am studying for my GREs .  Yes, it’s the second time around, but a 740 on the quantitative score, 91 percentile, just isn’t high enough.  For what? Yup, I am aiming for a PhD in economics.  

About time, huh?  Perhaps.

So efforts to log my ideas, get support and find inspiration, in addition to [hopefully] regular blogging, I’ll keep my trials & tribulations tabbed in efforts to keep my focus on these applications.

For a PhD in economics, depending on the school’s program, it takes about a year of core courses based in macro, micro and econometrics.  There is a 2nd year where focus or two is developed.  Commonly offered concentrations are econometrics, macro/monetary policy, international economics, public policy/developmental economics, financial economics, and usually other offerings.  Often, though, I do not see behavioral economics, which is quite popular lately (eg Freakonomics).   Personally, I find myself attracted to monetary policy (helloooo banking!) and econometrics, but I can not help but have interest in international as well as behavioral economics. I’m sure a year into the program, with guidance, I’ll be able to figure out which is most beneficial to me.

After the first two years of courses, years 3 – 4 or 5 holds a lot of research.  Often there is a research thesis in year 3 or seminars, with dissertation development & presentation in year 4 (and 5 if it’s a 5-year program).  This part is what I’m really excited about – the research.  

A few programs that I’m interested in (in a loose order of priority):

Goethe University (Frankfurt, Germany)
CERGE (Prague)
Boston University
University of Chicago (far far reach)
MIT 
There are plenty more, of course.  It’s actually suggested to have about 15-30 schools to apply to.  Really, it’s the program, often not the school, since it is generally ridiculously hard to get into an economics program.

So, here I sit, trying to perfect my GRE scores.  Next on my list is more math classes.  Yes, I took a class at Harvard, but I was neither focused, nor saved from drowning, so I feel another linear algebra class is needed.  As well as some differential equations.  Woo hoo.  

A rough time line:

Aug 29th: GRE test
Sept – Oct: Differential Equations
October: Statement of Purpose writing & Request of recommendations (2-3 needed)
Nov – Dec/Jan: Linear Algebra 
Applications due: Dec through January

Mar – May: Letters of acceptance or rejection.  woo!

Quite the journey – let’s hope I have the mental endurance to make it through.

A  man who has looked into an economics textbook and concluded that economics is boring is like a man who has read a primer on logistics and decided that the study of warfare must be dull.  Heilbroner – The Worldly Philosophers.

awesomeness.

Inspired by This American Life

What’s a love life worth to someone?  To me, perhaps?

$20 for two movie tickets, $8 for popcorn & a soda, $4 for the round trip T ride.  Then another $30 for dinner afterwards. So $64 total. The movie is about what, two hours? a meal, an hourish.  So that’s about $21/hour for his time.

Stopping there, that seems a bit pricey.  Honestly, that costs more than what I earn hourly-ish.

But then take into account the time spent after that night.  We go home, fool around for another hour.  That winds down to about $15/hr.  Soaking in all the passion, the sweat, the short burst of cardio, that may be worth it.  Soon following, a sweet moment of cuddling.  Both currently living in the present, breathing in the smell of pheromones and cooling down.  A sense of satisfaction, accomplishment and a shit eating grin.  OK that could definitely be worth it.

Then time passes on.  Dates add up.  Money on time racks up, but the same level of satisfaction maintains.  Appreciation for each other wears down and now it’s $62 for 4 hours of fake time spent with each other.  The $15/hr isn’t returning the same outcome as before.

It starts to dwindle down, drifting apart.  And then it happens – the official parting.

Initially hours a day are spent upset over the lost relationship.  Opportunity cost lost.  The losses first are large, spending time alone rather than reaping the benefits of being out or being productive.  Time thought over the loss of the relationship dwindles down, maybe only one hour a day, then maybe a few minutes before the day starts with a quick reminder of waking up alone.  

In the end, the pain of the break up is enormous.  It adds up, lots of tolls on the mind and body.  It nearly outweighs that of the time spent enjoying each other.  One because the time spent in pain adds up, and two because of the zero chance of returning to the same nook that I cuddled in.  

The opportunity costs equal, or could very nearly outweigh the ‘investment’.  Why do people continue to jump back in the game when they very well know the possible ending will negate all that of the investment?

This is a very cold way of looking at relationships.

But really – is your time better spent elsewhere?

“Should we fear a trade backlash?” – Trade & Immigration – Mark Thoma, Economist’s View
“Wine as an economic indicator” – Catherine Rampell, Economix 
“Is this where the $700 billion is going?” – Stephen J. Dubner, Freakonomics 

Pretty weak list.  Everyone’s on vacation

The new year brings hope for bigger and better things, and I am no different!

My new years resolution is to write everyday.  Well, at least 6 of the 7 days a week.  Decent enough, right?  Also – I’m attempting to get a domain name for this, as I’d like to have more control over the look and feel of my presentation.

Let’s start off - 

Some ideas I would like to explore: 

• Basel accord (I & II)
• Keynes vs Friedman
• Pegging fed funds to an index

Anyone else have any suggestions? 

Also – a little FYI for my reader(s), another personal new years resolution is to get into a PhD program (or, the very least, a master’s) in economics.  I’ve signed up for the GRE exam for the end of February, as well as linear algebra (beyond calculus) at Harvard (extension school, mind you) to firm up my application.  I plan on refreshing my stats and calculus as well, and hopefully do another research project, like that of the FHLB exploration.  Schools I’m looking at are University of Washington, Suffolk University, Goethe University in Frankfurt, CERGE in Prague, University of Chicago (a reach, I know), and maybe UC San Diego, MIT (streeeetttcchhh) and another safety and/or international school.  Anyone know of any other good schools for economics?  

Cheers!

This is an ingenious idea!  Thanks to Tyler Cowen at Marginal Revolution for starting a book club via his blog.  I intend on following his ideas, as well as come up with my own, while reading The General Theory of Employment, Interest, and Money (Great Minds Series).  

I got some more books in my back pocket, so-to-speak.  But if you have any suggestions, feel free.  I plan on adding this book blogging club aspect to here, on top of normal posts.  Because, seriously, this is a fantastic idea!

Traffic is picking up – I should write more!  Anyone got ideas?

My current thought is (and it seems to be popular with the econ blogs out there…I had this idea two weeks ago!) – Keynesian versus Monetarism, their schools of thought argued against each other, especially pertaining to today.  This will take some research though, so it will take a while.

Any other banking/monetary policy ideas out there?