This is realism rather than pessimism. Policy responses to downturn can be fiscal, monetary or structural. On structural, there is thus glorious uncertainty about nothing significant occurring. Public expenditure isn’t the point, even in infrastructure. The problem isn’t resources, but administrative
capacities of government systems to deliver. One would like to think those reforms are more likely under (3) or (4), except that the last five years of (3) don’t inspire confidence. Back to Gray — many a reform idea shall “waste its sweetness on the desert air”.
The writer is a Delhi-based economist express@expressindia.com
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