ASSESSMENT OF FISCAL POLICY IMPACT ON INCOME INEQUALITY ELIMINATION AND POVERTY ALLEVIATION

Abstract

The paper analyzes the impact extent of individual instruments of the monetary policy on income inequality and poverty alleviation. Therefore, we firstly studied the stand-points presented by various economists on income inequality and poverty, the nature of income inequality and poverty, its consequences and the main causes. Then the move-ment of indicators characterizing income inequality and poverty in Armenia during the last decade were studied, the current state of those problems and the main reasons for their drastic changes were analyzed. The article also developed two models and per-formed a regression analysis using the Least Squares Method. First, the model assesses the impact of monetary policy on income inequality, examines the main reasons for indi-vidual monetary policy instruments impact. Then, through the other model, the extent of the impact of individual instruments of monetary policy on poverty was calculated, and the main reasons of the impact extent of individual instruments of the monetary policy were studied.