In the current research, using the wavelet method and coherence analysis, it is tried to redefine the relationship between the growth of money (the monetary base and liquidity) and inflation in the economy of Iran. To this end, using the available seasonal data (1982-2017), the coherence of these variables is investigated in different time periods. Unexpectedly, the results indicate that in assessment of the relationship between liquidity and inflation, monetary policies based on liquidity changes has no significant impact on the inflation, but the growth of monetary base in the middle and long term has a direct relationship with inflation and this justifies quantity money theory in Iran more than liquidity variable. Therefore, it seems that, in the long run, the change in liquidity factor is not a suitable strategy for Iran's economy, but in the case of the monetary base, the result is somewhat different and shows in the medium and long term it will have significant impact on monetary policy and inflation. In other words, despite the current study suggests the liquidity variable is endogenous (lag effect) in the short and middle term, but according to available information, one cannot rule out the exogenous hypothesis of the monetary base in the Iranian economy. So, in the long run, on the basis of quantity money theory, money supply (especially monetary base) is still a powerful policy tool owned by the Central Bank of Iran. It is important to note that with regard to special potential of wavelet method in which the simultaneous investigation of short-term and long-term causality is done between time series of variables and the severity of the relationship between them, one cannot consider the inflation as a monetary phenomenon in all periods of times.

The study of the role of money in the economy of developing countries, and its impact on economic variables, analysis of monetary policies, and other related issues are of paramount importance in economic planning. Considering the above-mentioned points and also the realities of Iranian economy, it is quite vital to scientifically specify the long-term trend of money supply through investigation of modern theories. In addition, we try to investigate the welfare effects of money supply in Iran and to calculate the related optimum quantity of money. Determining the optimum quantity of money will help us to see whether the real money is lower or higher than the optimum quantity which guides us to formulate proper monetary policies. In this respect, therefore, we are able to weaken or eradicate the monetary roots of inflation and unemployment. For practical purposes, we use the collected data on Iranian economy (1956-2003) by proper dynamic optimization model solved by Excel.The results indicate that the real quantity of money is lower than its optimum quantity in Iran and that increasing the real quantity will have a positive effect on the economy.

Two theories have prevailed in the economic literature about the origins of money. According to the commodity theory of money, money has spontaneously emerged from the barter economy. In credit theory of money, since money is defined as an abstract unit of measurement, the origin of money coincides with the origin of writing. Credit money theory shows that the first standardized money of account emerged from ancient Egypt, Mesopotamia, and Greece due to the need for accounting records of payments and receipts of the central institution (government-temple). Once the general unit of account is established, credits and liabilities can be called in monetary units, thus we can reach the historical origins of money. This paper uses analytical-descriptive and documentary research methods to explain the incorrect reasons of the commodity theory of money. Eventually, the origin of money is expressed from the point of view of the credit theory of money.JEL Classification: E40, B52, N00, N10, N20

The problems of the monetary and banking structure، especially the existence of chronic inflation in Iran's economy, have caused the alternative theories of the existing monetary and banking structure to receive much attention in the academic and elite environment. One of the alternative theories that tries to present itself as an Islamic theory is the theory of gold money. This theory, which is derived from the theories of the Austrian school of economists, has been accepted by some Muslim scholars. In the book "An introduction to the theory of Gold money: The Monetary System of Modern Islamic Civilization", the dimensions of this theory and operational system for the implementation of the gold money system have been expressed. This article has criticized gold money theory with an analytical and descriptive method، focusing on the claims made in the above book. The conclusion is reached that the theorists of this theory could not explain their claims in all three parts of proving: 1) proving the Islamic nature of “gold money” based on school principals; 2) the operational processes of gold money and 3) the proof of the efficiency of this method compared to fiat money. It seems that their major problem is the lack of the proper understanding of a monetary structure based on gold.

Inflation and its causes are one of the main issues in economics. One of the theories that try to interpret this phenomenon is quantity theory of money. According to this theory, there is pure linear relationship between the amount of liquidity and general level of prices. This article tests the accuracy of this theory in Iran. In addition, the government of Iran has taken the policy of price stabilizing for several years. This article also investigates the effect of this policy on inflation rate. The results show that although the relationship between liquidity and inflation in Iran is not linear, changes in liquidity have a direct effect on inflation. In addition, results indicate that there is statistically significant positive relationship between inflation uncertainty and inflation rate. So government could control inflation uncertainty through this policy, which in turn lead to decrease in inflation rate.