Stigmatized Power/muddled ideas are the “central concern of economists” in India…

Yes that’s how it seems to be in India as for as macroeconomics is concerns. Most of the macro economists in India are not interested to look what economists like Hayek and others said. 

It is not surprise when Mr Bery write “the developed countries (some of whom then were not much richer in the 1930s than the middle-income countries of Asia today), interest in saving was largely stimulated by the work of John Maynard Keynes and his attempt to understand the sources of the Great Depression. As he famously observed, in an economy closed to international trade and capital movements, overall economic activity adjusts to equate desired saving with desired investment. 

This insight, together with the implication that government must intervene when desired investment falls, desired saving increases and credit markets fail (all of which are true of the United States today) lies at the heart of today's call for global fiscal stimulus.” 

What are you talking about? Now it is recognized by every one that the crisis were deepened in United States because of dried up ‘savings’ in other words US consumer used all or most of their earning and saved nothing or less. 

What about the wrong direction of government during boom period. Did private institutions have intervened or do they have any incentive to do so for corrective mechanism?

Dr Subroto Roy on Dr Raja Chelliah

He writes with a dimmed mind by remembering his meeting with Dr Raja that “The institute he founded appears to consist mostly of a name and some buildings and a lot of wasteful bureaucratic public expenditure as is typical of the new Dilli Raj of recent decades.   I recall a heated discussion with two of his successors there in the late 1990s in which they somehow attempted to say they were beyond Government of India control and could do as they pleased (which they had in fact proceeded to do).  Neither could be said to have been familiar with Indian public finance data at the degree of precision necessary to grasp  the fiscal problems Dr Chelliah had warned against.  Like the Planning Commission and similar sets of public buildings, it is all mostly a waste;   Delhi’s “think tanks” have been largely incapable of any real thought.” 

In fact the same point was already raised by another economist Suman Bery, who is also head of NCAER.