01826cas a2200241 a 4500 AALejournalIMF003413 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451860443 1018-5941 BD-DhAAL BD-DhAAL International Monetary Fund. Monetary Policy and Corporate Behavior in India. Washington, D.C. : International Monetary Fund, 2005. 1 online resource (25 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students The paper examines the association and corporate behavior for a sample of manufacturing firms in India for the post-reform period 1992-2003. The findings suggest that a contractionary monetary policy lowers overall debt including bank debt, although the lagged response is positive, and 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. A disaggregated analysis of responses of firms according to size and leverage largely validates these findings. Two policy implications emerge from the analysis. First, the interest rate transmission channel has strengthened since 1998, and, second, corporates in India, especially listed ones, seem to exhibit relationship lending. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2005/025 Full text available on IMF http://elibrary.imf.org/view/journals/001/2005/025/001.2005.issue-025-en.xml IMF e-Library