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Arvind Subramanian: The Triumph of Economics

This blog post was originally published in the Business Standard.

The Greatest Depression that could so easily have happened in 2009 but did not is the tribute that the world owes to economics.

In 2008, as the global financial crisis unfolded, the reputation of economics as a discipline and economists as useful policy practitioners seemed to be irredeemably sunk. Queen Elizabeth captured the mood when she asked pointedly why no one (in particular economists) had spotted the crisis coming. And there is no doubt that, notwithstanding the few Cassandras who had correctly prophesied gloom and doom, the profession had failed colossally.