BI Urged to Favor Credit Lines over Market Operations

Jakarta ( JP ). Bank Indonesia ( BI ) should direct more liquidity to productive sectors through credit lines to reduce inflation and bank interest rates, economist Nyoman Moena said. Moena, former BI director, said that central bank’s current policy of market operation through issuing Bank Indonesia Certificates ( SBI ) and buying commercial bank’s money market securities ( SBPU had failed to revive the dying economy ).

“ By using SBIs and SBPUs, BI could not monitor when the money goes. Once the money is disbursed, it may go to speculators, “ Moena said.

BI has pumped a huge amount of liquidity – the total is estimated to be more than Rp. 30 trillion ( US$ 3 billion ) – to cash strapped banks.

Moena said the money remained tight despite such a huge supply of liquidity, indicating that the money had gone to the wrong targets.

                                                                                                            The Jakarta post 

Technology

                The technology tells us how much output can be produced from the amount of labour and capital used in production. A simple  way to describe the technology is in terms of  a production function, which shows how much output can be made from given amounts of labor and capital. The production function can be represented using symbols as follows :

                        Y = F ( N , K )

This is simply shorthand notation for saying that the output Y that is produced in the economy depends on employment N and capital K. ( reading out loud we say : “ Y is a function F of N and K. “ ). The notation F with parentheses after it means a general function of the vvariables listed in parentheses. With such a notation we are not specific about what the function actually looks like, whether it is linear or the square root of N, or whatever.

            The production function relates output to employment and capital whatever their levels, even if employment is below potential. It would tell us how much real GNP would be produced, for exemple, if there were a very severe depression and only half the normal number of people were at work

Leadership in Organization

            Leadership is an integral part of management and plays a vital role in managerial operations. If there is any single factor that differentiates between successful and unsuccessful organization, it would be considered as dynamic and effective leadership. Perhaps, it would be a valid assumption to state that the major cause of most business failures would be ineffective leadership. All managers, in a way, are business leaders, even though management primarily relies on formal position power to influence people whereas leadership stems from a social influence process. However, management is an integral component of technical as well as social processes.

            Leadership is not an attribute of business alone. In the army, in the government, in universities, in hospitals and anywhere else where people work in groups, the leadership function emerges. There must be somebody to guide that group. The group leader may also be an informal leader, one who emerges from the ranks of the group according to consensus of the members.

            Leadership may be defined as the art of influencing and inspiring subordinates to perform their duties willingly, competently and enthusiastically for  achievement of group objectives.