|
Title: |
An Analysis on the Effects of Chinese Monetary Markets on Relationship between Inflation and Income Inequality in China——From a Wealth Threshold Perspective |
|
Source: |
International Conference on Engineering and Business Management 2012(Part 4 Urban Management and Financial Investment)
(pp 3023-3026)
|
|
Author(s): |
Mengyuan Ren, Shaanxi Normal University, Xi’an, Shaanxi, China, 710062
Yenan Zhou, Shaanxi Normal University, Xi’an, Shaanxi, China, 710062 |
|
Abstract: |
Monetary markets have an important regulating action on the relationship between inflation and income inequality. By establishing mathematics models, we analyzed this relationship between inflation and income inequality in China through the perspective of threshold of wealth. The results indicated that, because of the wealth threshold in China, inflation raised this threshold of avoiding inflation, and the threshold further reduced the effects of avoiding inflation. Under the contest of contemporary Chinese developing monetary markets, Johansen cointegration test and Granger causality test are conducted. The results proved the positive effects of Chinese monetary markets on the relationship between the inflation and income inequality in China.
|