The Macro-adjustment Of The National Income Distribution Pattern Based On Monetary Effects Perspective

The income distribution system is fundamental and basic in economic development. The distribution of income refers to the distribution in the national sectors which includes financial enterprises, non-financial enterprises, government and residents. Through initial distribution way, national elements income distribution formed first income distribution of each departments, and then by the inter-departmental transfer payment form disposable income of various departments. Income distribution and demand structure has a close link. Improving demand structure may help regulate income distribution pattern of China, meanwhile our pattern of income distribution also has an important impact on domestic demand in improving national demand aspect.Recently, foreign scholars have proposed theories about monetary policy effects on income distribution. Chinese scholars also recognize gross adjustment functions of monetary policy have met its limit, we should pay our attention to its structure adjustment functions.According to the inter-reaction between demand structure and income distribution, four structure adjustment effects, and monetary effects on demand structure and income distribution, this paper proposes mechanism how monetary policies promote the improvement of demand structure and income distribution. At the same time, this paper using data from recent decade, made the empirical analysis about monetary effects on demand structure and income distribution, and then elaborated the regression results. Finally, starting from the current situation, explored differentiate monetary policy, monetary policy and other policies as well as interest and exchange rates marketization.The whole paper is divided into five chapters, the contents of which are showed as follow: Chapter One, firstly, this paper defines the connotation and extension of monetary policy in China practices. Then, from the theory of Keynes and its evolution, provides theory foundation for the logical link of monetary policy, demand structure and income distribution.Chapter Two, Literature review about unequal distribution of income, demand structural imbalances and monetary policy. The effects of monetary on income distribution are briefly divided into four categories:First, the wealth effect; Second, the financial market effects; Third, capital formation effects. Fourth, the employment effects. And also, review the"Inclusive Financial System" and financial pro-poor theory,Chapter Three,review of recent years research" about the relationship among demand structure and income distribution, combined with life cycle theory and consumption theory,conclude that demand structure and income distribution interplay each other.Chapter Four, the core theory framework of this paper. First, using the statistical data of recent decade, analysis and give the explanation about the demand structure and income distribution, support the view that demand structure and income distribution interplay and promote each other. Pointed out that structural effects of monetary policy in the practical application in accordance with the empirical results, besides the industry effects, regional effects, consumption effects and employment effects of monetary policy, the coordinate of fiscal policy and industrial policy with these effects is also worth noting, in order that these effects play a greater role and reduce the monetary policy transmission difficulties and social costs.In this chapter, we also analysis the change of economic structural and the process fiscal policy coordinated with monetary, further added up to the interpret of the statistical data analysis results. Based on the policy practice characteristics and foreign research view points, we proposed the structural effects of monetary policy of our country, and discussed the mechanism of monetary structural effects on demand structure and income distribution.Chapter Five, the empirical analysis part. According to the life cycle theory, based on microscopic inter-temporal decision optimization principle Euler equations, we construct the regression model, using dynamic panel data regression confirm that the four structural effects of monetary policy do exist in our country. According to the regression results we explain the direction of impacts and the reasons.Chapter Seven, the summary and outlook. In future, we may use differentiated reserve policy and credit policy inter-regional and inter-industry, promote the marketization of interest rates and exchange rate market-oriented reforms, and gradually improve the structure of banking and stressing of the role of market.The innovative points of this paper:First, innovative of research perspective(1) In this paper, combined with changes in the economic structure under our policy practice path, we discussed and supplement the relationship between the structure and the distribution of income.(2) In this paper, we promote the views of structure of regulation of monetary policy, structural effects of monetary policy were discussed, proposed industry effects, regional effects, consumption effects and employment effects, and proposed mechanism that structural effects of monetary policy affect the demand structure and income distribution.Second, innovative of research methods.In this paper, we use status indicator in the study of income distribution and demand structure of China, intuitive showing the demand structure of income distribution and the existing problems and the disadvantage for long-term sustainability of economic growth, then combined with China's economic transition characteristics, explained the problems.In the empirical part, the classic theoretical model of income and consumption has been improved to make it more responsive to the theory proposed in this paper, the use of dynamic panel data also promote the conventional panel data one step further.