Lord Meghnad Desai, Life Peer, British House of Lords, Professor Emeritus, London School of Economics, UK said that a new theoretical and practical approach is required to understand the long-term business cycle, which is a combination of several short-term cycles. Considering the economists failed to predict the 2008 economic crisis, Lord Desai believes this is a time for a whole new approach to predict the different business cycles.

He spoke at the interactive session ‘Hubris: Why economists failed to predict the 2008 financial crisis?’ jointly organised by MVIRDC World Trade Centre and the Meghnad Desai Academy of Economics. The Meghnad Desai Academy of Economics was introduced at the event.

Lord Desai delved into the theme of his address by describing the paradox of the economists’ practice. He took the audience through a historical perspective of how economists from Adam Smith (1770 AD) to Paul Krugman (in 21st century), theorized the various business cycles in the world economy. Desai also explained the role of credit in causing economic cycle by highlighting the debt crisis in the third world economies after the rise in the US interest rates in the 1980s.

Dr. Ajit Ranade, Chief Economist, Aditya Birla Group announced the opening of the Lord Meghnad Desai Academy, describing it as an unique venture that is expected to bridge the gap between academia and practical wisdom.

Dr. Indu Shahani, Dean, H.R. College of Commerce & Economics emphasized the need for a holistic approach towards teaching economics. She said the academy will have latest research techniques, data handling methods, good communication skills program and industry exposure.

Capt. Somesh Batra, Vice Chairman, MVIRDC World Trade Centre gave the welcome address. While, Vijay Kalantri, Vice Chairman, MVIRDC World Trade Centre and President, All India Association of Industries delivered the vote of thanks by praising Lord Meghnad Desai for his insights on economic cycles.

Caption: From (L-R) : Capt. Somesh Batra, Vice Chairman, MVIRDC World Trade Centre, Vijay Kalantri, VC, MVIRDC WTC and President, AIAI, Lord Meghnad Desai, Life Peer, British House of Lords, Professor Emeritus, London School of Economics, UK and Dr. Indu Shahani, Dean, HR College of Commerce & Economics.