Semnan University Journal of Econometric Modelling 2345-654X 4 3 2019 08 23 The Effect of Corruption and Central Bank Independence on Volume of Money in Iran: Using the Model (STAR) The Effect of Corruption and Central Bank Independence on Volume of Money in Iran: Using the Model (STAR) 111 140 3983 10.22075/jem.2019.18322.1350 FA Maryam Ghadimi Ph.D Student in Economics, Islamic Azad University,Tehran South Branch Mahnaz Rabiei Assistant Professor in Economics, Faculty member of Islamic Azad University,Tehran South Branch Abdolah Davani Assistant Professor in Economics, Faculty Member of Islamic Azad University, Tehran South Branch Abolfazl Shahabadi Professor in Economics, Faculty member of Social&Economics Department, Alzahra University Journal Article 2019 07 21 The present study has investigated the effect of corruption on monetary policy with respect to different levels of central bank independence during the period 1978-2017 using the STAR model. The results of the model estimation, in addition to confirming the nonlinear in the relationship between Central Bank of Iran Independence Index and the growth of money volume, show that increasing the degree of central bank independence in both regimes has reduced the growth of money volume. In addition, in the regime of low central bank independence, an increase in the corruption index has led to an increase in the volume of money. However, in a regime where the central bank is more independent, the index of corruption has no effect on money growth. The present study has investigated the effect of corruption on monetary policy with respect to different levels of central bank independence during the period 1978-2017 using the STAR model. The results of the model estimation, in addition to confirming the nonlinear in the relationship between Central Bank of Iran Independence Index and the growth of money volume, show that increasing the degree of central bank independence in both regimes has reduced the growth of money volume. In addition, in the regime of low central bank independence, an increase in the corruption index has led to an increase in the volume of money. However, in a regime where the central bank is more independent, the index of corruption has no effect on money growth. https://jem.semnan.ac.ir/article_3983_69323c1788344af9be22d84a90029632.pdf