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.