Expectations and Reality
An "economic miracle" transformed my homeland, Taiwan. Being a witness of this unprecedented transition which spanned more than thirty years triggered my interest in Economics. While I studied this discipline I gradually realised how neatly it provides a framework in explaining complex daily issues arising due to scarcity of resources. One of my major expectations in pursuing Economics was therefore to learn how to distil insights from observation of human interactions in society and put the theory into practice. Secondly, I wanted to comprehend in greater depth how the "Taiwan experience" originated and whether it could be replicated elsewhere in the world.
Probing into such complicated subjects I was hoping that some modules would require teamwork and encourage constructive debates involving both my peers and professors. Discussing with them would not only be intellectually stimulating but also guide me to the best path for learning how to approach a problem. This is important because this will both reinforce my knowledge in Economics and teach me how to keep abreast with and study future Economics ideas.
Initially I felt slightly disheartened to learn that some of the foundations I learnt in A-Level Macroeconomics proved to be conceptually conflicting at university deterring my progress. However, one aspect I liked was learning some of the key economic events such as the American Depression and hyperinflations that occurred during the 1980s and 1990s. The only pity was that I found there was often unnecessary overlap in course structure between the first and second year, which could have otherwise been devoted to more profound economic theories within International Economics.
Throughout my Microeconomics courses, I have tapped into two fundamental theories: game theory and inter-temporal consumption models. Although backwards induction and forward planning may be common sense, the manner in which they break down each stage of my thought process to solve sophisticated problems has improved my critical thinking skills. However, I did find some of the algebra crunching an obstacle since there was rarely economic intuition to explain each step. Although in every module, the academics provide office hours for students per week, which I find helpful, since it was only one hour per week for a class of more than one hundred students, it was practically impossible to receive their advice. Subsequently, not only was time squandered over trivial workings, but there was a dip in my interest.
In addition, with so much focus in the mathematical aspect of Economics, the element of essays is gone. As a result, I have no opportunity to apply formally in a dissertation what I have learnt. Furthermore, since my assignments are only marked twice per term, both my ability in reasoning and attention to detail in my work deteriorated. My anxiety rose during a Scholarship Conference in New York last year when I found that many Ivy League students were much more fluent and careful when expressing simple ideas and economic theories.
This year, I have finally been given the opportunity to embark on a course which covers currency crisis, behavioural economics, experimental economics and development economics. As both a competitive bridge and chess player, I relish strategic thinking and identifying the motivation behind people's decision making. During these lectures I found that apparently irrational consequences were initiated through rational expectations such as herding in currency crisis. Being an Asian who came to the UK a few months after the crash of the ERM and then experienced the powerful appreciation of the British Pound, I have been interested to find the roots of the problem. Furthermore, with the following contagion that struck Asia, I had always wondered the difference between the two currency crises. To know that I can associate my economic comprehension with recent affairs that have shaken my life was very fulfilling.
In my behavioural and experimental economics classes, the study of higher order beliefs fascinates me. Though it is tricky to keep track of how the third- or fourth-order agent is acting, in fact I become more engaged in class. As I gradually assimilated the material I also began to realise how a currency crisis works! During my lectures, my amazement at discovering that I was irrational, due to narrow bracketing, from an extremely simple questionnaire was an enlightening experience. To study topics that defy the traditional Von-Neumann-Morgenstern Utility Theory gave me the satisfaction that I was finally more in tune with modern Economics. More importantly, my lecturers rekindled my curiosity in Economics. Although the lecture lasts two hours with minimal break, the interactions in lectures presented me the opportunity to meditate carefully and keep me refreshed. Moreover, the realisation that I could analyse professional economic journals and models on these themes was rewarding since this would have been impossible before I attended university.
There were many unexpected positive features to my degree. Its flexibility in choosing diverse modules has given me a more all-round awareness of how Economics influences the world. During my finance course I have regularly encountered the existence of Macroeconomics and Microeconomics. I have constantly needed economic concepts such as uncovered interest parity to tackling questions involving international arbitrage, and the principle-agent notion to understand how a firm operates. Although ideas are simple to state, the analytical rigour of the Economics and Mathematics to prove it is beautiful.
Throughout my Spanish Literature and Society course I explored into the political economy from the Spanish Civil War until the death of General Franco, and the impact of international migration. Despite being taught in Spanish, I recognised the predicaments of an autarkic regime and how factor mobility affects economies in reality.
After studying Economics for three years, I have become more conscious of how the world works. I particularly enjoyed the heuristic approach and independent thinking encouraged by my teachers when they incorporate real life scenarios into lectures. Unfortunately time constraint did not allow me to explore more topics that I would have liked such as Economic History or Monetary Economics, and especially my ambition to investigate on Taiwan. Although not all expectations of my course were fully met, however, some aspects have gone beyond what I had anticipated. Economics has made me realise how it encompasses so many more surprising branches of knowledge. Due to this, I realised that if I were to pursue my academic career further, it would be after some years of work experience so I can test myself and further understand what I really like to pursue. Overall I am pleased that I chose this brilliant degree.
Grant is studying Economics at the London School of Economics and Political Science.