Impact of Monetary and Fiscal Policy on Income Distribution Index (Case Study: some developing and developed countries)

The present research addresses impact of monetary and fiscal policy on income distribution in some selected developing and developed countries. Income distribution in the economy is measured by various methods, most notably and most obvious of these methods include income distribution index using Gini index. Governments and states by imposing monetary and fiscal policies can have an impact on macroeconomic variables. Income distribution index is one of macroeconomic variables that are considered by economic policy makers. To estimate Gini index index in developed and developing countries, the panel data model was adopted. Liquidity as a monetary policy index and transfer fees as government s fiscal policy index is used. Statistical data between 2000 and 2017 using data from the World Bank were collected. The result of the estimation showed that the impact of monetary and fiscal policy on Gini index is negative in the two groups of countries.