Abstract

This paper mainly concentrates on examining the impact of monetary policy on income inequality in Vietnam from 2001 to 2014. In our study, monetary policy shock is represented by the difference between the real and targeted growth rates of money supply of the State Bank of Vietnam (SBV), while income inequality is measured by Gini coefficients. The results of VAR model show that monetary policy has a small and lagged effect on income inequality. Besides monetary policy, inflation, education and unemployment are also found to have significant impact on income inequality, while economic growth has insignificant effect on this variable. Based on these findings, we suggest that the SBV should pay more attention at the inequality consequences caused by its monetary policy.

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.