Economic slowdown: Will the fiscal stimulus package put India back on track?

Fiscal policy is a potent instrument that must be used to alleviate the unemployment crisis, but first, supply-side constraints need to be systematically united

I vividly recall watching an interview with Paul Krugman in which he remarks that being a macroeconomist soon after the 2008 global financial crisis was like being an undertaker during a famine – business was good. As a teacher of the subject, I cannot but agree, even though it sounded rather insensitive to the victims of a famine. Until the crisis, macroeconomics was more like a course on economic history; most Keynesian theories seemed relevant to the Great Depression of the 1930s. It was difficult to satisfy the students’ constant demand for “real world examples” and contemporary ones at that.