Digital Finance, Monetary Policy and Common Prosperity

Abstract

This paper demonstrates the relationship among digital finance, monetary policy and common prosperity. The study finds a positive U-shaped relationship between digital finance and common prosperity. Monetary policy plays a moderating role in the relationship between digital finance and common prosperity, with its impact on sustainability being more pronounced. The non-linear relationship between digital finance and common prosperity is more significant in regions with well-developed markets, while the moderating effect of monetary policy is more pronounced in regions with lagging market development. Based on these findings, this paper proposes suggestions on promoting high-quality development of digital finance and accurately leveraging the role of monetary policy, thus solidly advancing common prosperity.