The article examines how policy errors in India's monetary and government expenditure decisions affected the country's economy after the global financial crisis. By using a New Keynesian model, the researchers found that highly contractionary interest rate policies from 2013-2016 led to lower output. They suggest that policy makers should consider the sources of inflation in a developing economy when making demand-management decisions to avoid similar errors in the future, especially in response to adverse supply shocks like the current pandemic.