Monetary Policy's Impact On Income Distribution In China

In recent years,China's economy has remained rapid growth.The 13 th Five Year Plan pointed out that the main economic target to 2020 during The 13th Five Year Plan is that our gross domestic product(GDP)and urban and rural residents per capita income achieve double these in 2010.However,with the economic increasing,how to make the economic growth benefits more and more people has become the focus of all walks of life.In this paper,we study monetary policy's impact on income distribution.In theory,this article combs the mechanism of monetary policy's action on the income distribution in our country and draw a conclusion that the expansionary monetary policy will increase the income distribution disparity between residents,increase the income distribution disparity between urban and rural and reduce the labor income share in the elements of the income distribution.From the empirical aspects,this article uses the relevant Chinese domestic panel data,establish mixed regression model and the fixed effects model,test the above conclusion and think that conclusions from theoretical analysis are reasonable.At the same time,according to the study we get the final conclusion and the corresponding policy recommendations.