When Monetary Policy Stops Working: Financial Stress and the Non-Linear Transmission Mechanism in India

This study employs quarterly macroeconomic and financial
data for India spanning approximately four decades, cover
ing the period from the mid-1980s to the early 2020s. The
choice of a long sample period allows the analysis to cap
ture multiple monetary policy regimes, financial cycles, and
episodes of systemic stress, thereby providing a comprehen
sive assessment of monetary policy transmission under vary
ing financial conditions.