​The paper estimates the impact of monetary policy on income inequality in China. The empirical modelling finds that a battery of monetary indicators, including a monetary overhang measure derived from a money demand equation, and the change in the unemployment rate lead to increases in the...

China’s high income and wealth inequality has long attracted the interest of policymakers and re-searchers, yet surprisingly little has been done since 2010 on inequality trends. Given China’s evolving economic structure and the government’s adoption of new policy tools in recent years, we...