## Monetary Policy and Corporate Behavior in India

_IMF Working Papers, February 1, 2005_

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## Bibliographic details
- Published: February 1, 2005
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451860443.001

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### Summary findings
- Sample and period: manufacturing firms in India for the post-reform period 1992-2003.
- Main empirical findings:
  - A contractionary monetary policy lowers overall debt including bank debt.
  - The lagged response to monetary contraction is positive.
  - Listed firms increase their short-term bank borrowings after monetary tightening.
  - The responses of corporates to a monetary contraction in the post-1997 period has been more pronounced.
- Disaggregated analysis: responses of firms according to size and leverage largely validate the aggregate findings.

### Policy implications
- The interest rate transmission channel has strengthened since 1998.
- Corporates in India, especially listed ones, seem to exhibit relationship lending.

### Key statistics and publication metadata
- Publication date: February 1, 2005
- Pages: 25
- Volume: 2005
- Issue: 025
- Series: Working Paper No. 2005/025
- DOI: https://doi.org/10.5089/9781451860443.001
- Stock No: WPIEA2005025
- ISBN: 9781451860443
- ISSN: 1018-5941
- Citation (as presented on the page): International Monetary Fund. "Monetary Policy and Corporate Behavior in India", IMF Working Papers 2005, 025 (2005), accessed 9/17/2026, https://doi.org/10.5089/9781451860443.001
- Subject keywords listed: Bank credit, Banking, Financial statements, Monetary tightening, Stock markets
- Additional keywords listed: balance sheet, debt ratio, firm-level indicators, governance characteristic, interest rate, WP

*International Monetary Fund. "Monetary Policy and Corporate Behavior in India", IMF Working Papers 2005, 025 (2005), accessed 9/17/2026, https://doi.org/10.5089/9781451860443.001*

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