"Pak Kwik", behavior finance and "Regulation" problem
Pak Kwik's opinion in KOMPAS today, remaind me on the manuscript of André Orleans "Efficience, finance comportementale et convention: une synthèse theorique" in "Les Crises Financières" (Robert Boyer et al., 2004) - report for Conseil d'Analyse Economique, think thank group for French Prime Minister.
This style of thinking is comparable with "Behaviourist Finance". Robert J. Shiller with his fascinating book "Irration Exuberance" mentions the same issues.
However, in the perspective of Regulation School, actually, crisis will erupt in the situation in which mode of regulation could not support regime of accumulation. When mode of accumation is collaps, it is searching new mode of regulation. It is the time, where crisis hit in around Asian countries, Mexican country, Russia and other countries in three continents (Asia, Europe and America).
I argue, in such period of transition..searching on new equilibrium...economic development should be more fragile and financial market will be more volatile..
But why Indonesia become more fragile comparing to the neighbouring countries? The answer may resides on the mode of regulation itself, in which comparing to other countries in the region, Indonesia is more unstable. I think...