The Estimation of Volume of Dirty Money in Iran

Abstract

Laundering money is a way to use legally dirty money obtained from illegal actions, so this will threat the nature of economic activities. In this paper, in addition to surveying of studies related to underground economy, will be calculated the capacity of dirty money provided in the illegal economy in Iran during 1352-80 by selecting one of the models in these studies and using it in the money demand function. This estimation shows that the capacity of dirty money has been increased recently and there is a significant relationship between growth of money demand and extension of underground economy. These results should be paide especial attention by policymakers to reduce the underground economy and to create some obstacles to not enter dirty money to economy.