Analysis Of The Impact Of Monetary Policy On Urban-Rural Income Gap

At present,there is a gap of absolute and relative income between urban and rural residents.In the long run,the growth rate of urban residents' income is much faster than that of rural residents.So,the absolute gap continues to widen.Although the relative gap fluctuates,it remains at a high level for a long time,and the overall trend is expanding.This paper studies the mechanism of monetary policy's heterogeneous influence on urban and rural residents' income,and clarifies the process of monetary policy's influence on urban and rural income gap,which is conducive to enhancing the effectiveness of monetary policy transmission mechanism,weakening the imbalance of monetary policy between urban and rural,and promoting the alleviation of urban and rural income gap.This paper mainly studies the impact of monetary policy on urban-rural income gap.Based on the differences in household income composition of urban and rural residents,this paper constructs a logical framework of "monetary policy--intermediary variable--urban-rural income gap",and conducts theoretical analysis and empirical test.In terms of theoretical analysis,this paper studies how monetary policy influences the urban-rural income gap through affecting intermediary variables,and qualitatively expounds the effects of various transmission channels.Taking the expansionary monetary policy as an example,the expansionary monetary policy will bring the increase of money supply.At the same time,the increase of money supply will cause the rise of commodity housing price,and the rise of commodity housing price will widen urban-rural income gap.The increase of money supply will cause the share of labor factors to decline,while the share of labor factors will narrow urban-rural income gap.However,the share of capital income will increase,which will expand urban-rural income gap.The increase of money supply will lead to the increase of credit scale,and the increase of credit scale will widen urban-rural income gap.In terms of empirical test,the mediating effect model was constructed,and the panel data of31 provinces(cities and districts)from 2001 to 2016 were used to test the transmission channels of the influence of monetary policy on urban-rural income gap.The research results show that monetary policy can affect urban-rural income gap through asset price,interest rate and credit transmission mechanism,which verifies the existence of transmission mechanism,and the effect of various transmission channels is consistent with theoretical analysis.Meanwhile,the robustness test also shows that the conclusion is robust.In the empirical analysis,31 provinces(cities and districts)were divided in eastern,central and western regions,and it was found that there were regional differences in the effect of monetary policy on urban-rural income gap.Finally,according to the theoretical analysis and empirical test results,there offer the corresponding policy recommendations.