The Impact of monetary policies on Income distribution in Iran

Nowadays, the economists are worrying about inappropriate income distribution and consequently, poverty, rather than wealth. Income distribution is a main element in current societies, and approximately all of the economists express that one of the most important aims and tasks of Governments is income distribution. This research concerns about effects of monetary policies on income distribution in Iran. We analyzed the data by means of vector auto regressive (VAR) model, and the final results show that there are differences between the impacts of monetary policies on income distribution in short-, medium- and long term in Iran. The expansion of money volume as a measure for monetray policy does not immediately result in increasing income inequality, however the intesifying effects of expantionary monetrary policy begins after second period and continues in the next terms.