The Research On Monetary Policy,Households Heterogeneity And Distribution Effect

This paper establishes a dynamic stochastic general equilibrium(BGG-DSGE)model with a financial accelerator mechanism,and includes high,medium and low income households,capital goods producers,wholesale goods producers,wholesale retailers,commercial banks,shadow banks,governments,and central banks to examine the distribution effects of interest rate shock and money growth rates shock on household income and wealth.Under the two kinds of shocks,the numerical simulations results show as follows: firstly,under the expansionary monetary policy,the distribution of wealth hidden behind income distribution is more essential,because the narrowing income gaps may be accompanied by the expansion of wealth gaps;secondly,in short term,expansionary monetary policy shocks have aggregate income growth effects,which also make policy makers face the selection problem between “fairness” and “efficiency”;thirdly,the interest rate policy that incorporates the control of leverage into economic targets has the effect of reducing the expansion of the wealth gap,while also slows down short-term economic growth at the same time.In general,this policy is superior to the money growth rate policy and the traditional interest rate policy;lastly,with the deepening of marketization,the distribution effects under money growth rate policy are weakened,and the effects under the interest rate policy are enhanced.The income gap of high-and middle-income families may be reversed.This results are robust even if the leverage ratio is included in the Taylor policy's goal.Therefore,the central bank should prudently use different monetary policy tools in conjunction with the process of market-oriented reforms,the production behavior and debt of firms,the interests of various income groups,and with other corresponding distribution policies to achieve targets of promoting economic growth and narrowing income and wealth gaps,and truly balance efficiency and fairness.