Business cycle dating committe
It analyses and compares the behaviour of key macroeconomic variables such as consumption, investment, unemployment, money supply, inflation, stock prices, etc., which may have different dynamics before, during and after the recession.It identifies turning points which act as a reference point for the construction of coincident, leading and lagging indicators of the economy.
Even an emerging market economy such as Brazil has a BCDC known as O Comitê de Datação de Ciclos Econômicos (Codace), created by the Brazilian Institute of Economics.
TAG suggested a methodological framework for the construction of coincident, leading and lagging indicators along with a composite index for the Indian economy.
It also reviewed different techniques adopted by various international organizations. Whether a BCDC should be part of the government, the RBI or an independent research organization with high credibility is debatable.
This is important in a country like India where GDP numbers are contentious and political parties try to score points on these numbers.
Also, the BCDCs are created by independent non-profit organizations.