Author(s)

Juanru Liu, Qinya Tang

Corresponding Author

Juanru Liu

ABSTRACT

In the process of economic development in our country, the rural residents' income has been achieved, but also formed the urban and rural dual economic structure, this article selects 2010-2017 panel data of 30 provinces in China, through the establishment of PVAR model analysis of monetary policy, rural residents' income and the income gap between urban and rural areas, the interaction between the three. The analysis results show that China's monetary policy has a long-term positive effect on farmers' income, and at the same time, it will widen the urban-rural income gap in the short term and narrow the urban-rural income gap in the medium to long term. Therefore, the formulation of a reasonable monetary policy is conducive to the long-term increase of farmers' income and the alleviation of economic structural contradictions, so as to seek policy inspiration from monetary policy, fiscal policy, credit policy and other relevant policies and measures.

KEYWORDS

Monetary policy, Income of rural residents, Income gap between urban and rural areas, PVAR