Studies under this theme can be classified into those focusing on long term macroeconomic performance of Indian economy and those analysing short run macroeconomic issues such as monetary policy and inflation. Studies belonging to the first category focused on issues like long term growth performance of Indian economy. These studies made an attempt to identify and explain the growth phases of Indian economy. One study tries to explain these growth phases in terms of cumulative causation emerging out of positive feedback between producer services sectors and manufacturing sector. Another study examines the role of the crisis, change in economic policy regime and export performance in the growth trajectory of Indian economy. A third one analysed the relationship between public policy and economic growth in the Indian context.
During the last three years, two studies examined the short run macroeconomic issues in the Indian context. One study examined whether Friedman’s monetarist proposition is still valid in the Indian context. The study essentially focuses on the relevance of money supply and credit in conducting monetary policy in India. The second one examined the impact of fiscal policy, captured in terms of government expenditure, on inflation in India. An ongoing study examines the validity of output gap interpretation of inflationary process in Indian economy. The study also proposes an alternative model of inflation in India based on features that would be considered typical of Indian economy. This model also involves a specific understanding of what drives inflation in a developing country like India.