 "Illustration by Ajay Mohanty")
We have been in a sustained downturn from 2011 onwards. How will this end? It is instructive to look at the last difficult downturn, of the late 1990s. We roared out of it through the exit of firms, improved productivity of firms, respect for policymakers, and a global revival. This gives us a rough template of what it will take to get out of this slump. This time, we will fare better on the exit of firms, through privatisation, the bankruptcy reform, and the resolution corporation.
We had a credit boom in the mid-1990s. Banking regulation was faulty so the banks
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