Abstract:-

The policy conclusions emanating from supply-side growth theories, notably the ones by Solow and Romer, are very well known. However, under critical scrutiny, these growth theories are not that robust, both theoretically and empirically. In this talk, I outline some of the dissatisfactions with supply-side growth theory and subsequently present the key propositions of demand-led growth theory, which arose from a different school of thought within economics (starting with the work of Keynes). I will end the talk by outlining the implications for research and policy.