The present study examined the asymmetric effects of monetary policies on income distribution in the Iranian economy during the period 1993 to 2022. The importance of this issue is that monetary policies, as one of the main tools of macroeconomic management, can have different consequences on different income groups and affect social justice. In this study, first, the income inequality index was calculated using the principal component analysis method. This method, by combining several indicators, allows for a more accurate measurement of the inequality situation. Then, the effects of monetary policies on the composite index of income inequality were examined using the quantile approach in different deciles. The quantile approach has the ability to reveal the effects of policies at different levels of income distribution. The results showed that liquidity, as a proxy for monetary policy, had a negative effect on income distribution in most deciles and led to a decrease in income justice. This finding indicates that increasing the volume of liquidity has benefited certain groups more and has exacerbated the income gap. In addition to liquidity, the effect of other explanatory variables was also assessed. The results showed that economic growth had a positive effect on reducing inequality, while the square of economic growth showed a negative effect. Exchange rate, degree of trade openness, and degree of urbanization also had a positive effect in most deciles and helped improve income distribution. Overall, the findings of this study show that monetary policies in Iran over the past three decades have had asymmetric and complex effects on income distribution, and it is essential for policymakers to pay attention to their distributional consequences.
asgharpur, H., Al-oufi, R. G. M., Barghi Oskooee, M., & Salmani, B. (2026). Investigating the Asymmetric Effects of Monetary Policies on Income Distribution in Iran. Public Sector Economics Studies, 5(1), -. doi: 10.22126/pse.2026.13378.1230
MLA
hossein asgharpur; Raed Ghazi Mohammed Al-oufi; Mohammadmehdi Barghi Oskooee; Behzad Salmani. "Investigating the Asymmetric Effects of Monetary Policies on Income Distribution in Iran". Public Sector Economics Studies, 5, 1, 2026, -. doi: 10.22126/pse.2026.13378.1230
HARVARD
asgharpur, H., Al-oufi, R. G. M., Barghi Oskooee, M., Salmani, B. (2026). 'Investigating the Asymmetric Effects of Monetary Policies on Income Distribution in Iran', Public Sector Economics Studies, 5(1), pp. -. doi: 10.22126/pse.2026.13378.1230
VANCOUVER
asgharpur, H., Al-oufi, R. G. M., Barghi Oskooee, M., Salmani, B. Investigating the Asymmetric Effects of Monetary Policies on Income Distribution in Iran. Public Sector Economics Studies, 2026; 5(1): -. doi: 10.22126/pse.2026.13378.1230
)