An Analysis on the Effects of China’s Monetary Markets on Relationship between Inflation and Income Inequality in China——From a Wealth Threshold Perspective
An Analysis on the Effects of China’s Monetary Markets on Relationship between Inflation and Income Inequality in China——From a Wealth Threshold Perspective
KONG Xiang-li, REN Meng-yuan, ZHOU Ye-nan
International Business School， Shaanxi Normal University, Xi’an 710062, China
Abstract Monetary markets have an important regulating action on the relationship between inflation and income inequality. By establishing mathematics models, this paper analyzes the relationship between inflation and income inequality in China through the perspective of threshold of wealth. The results indicates that, because of the wealth threshold in China, inflation raises the threshold of avoiding inflation, and the threshold further reduces the effects of avoiding inflation. Under the contest of contemporary China’s developing monetary markets, Johnsen Cointegration test and Granger causality test are conducted. The results prove the positive effects of China’s monetary markets on the relationship between the inflation and income inequality in China.
KONG Xiang-Li,LIN Meng-Yuan,ZHOU Ye-Na. An Analysis on the Effects of China’s Monetary Markets on Relationship between Inflation and Income Inequality in China——From a Wealth Threshold Perspective. Economic Survey, 2012, 1(4): 0121.
2012, Vol. 1 
