Structural slowdown and home market demand

Many economists are now saying what I have been arguing for some time — the present economic slowdown is structural. It is not caused by a downturn in the business cycle. Therefore, countercyclical policies are not appropriate to address the slowdown.

While this is immediately clarifying for policymakers, a structural slowdown can be variously interpreted depending on one’s analytical framework and understanding of the ground situation.

For some, “structural” means that sectors that have contributed to growth in the past face sector-specific impediments. Addressing these would involve sector-level policy interventions, for example, addressing questions of credit access or correcting adverse policies. This