Premium Essay

Islamic Money

In: Business and Management

Submitted By ziyovuddin
Words 4604
Pages 19
Abstract
The economic instabilities and crisis which have direct effect on the well-being of the people in the society are caused by many issues and variables. People can work to earn income and improve their lives through all difficulties in the economic conditions. People also save some of their income for their future needs. Their save money would be affected by inflation and their purchasing power would be diminished. Inflation is mostly a matter of monetary policy which occurs when a government prints money without real asset backup more than the amount that is need for a stable economy. This study examined the effects of implementation of Islamic currency on the prevention of inflation and price instabilities. Economic students of IIUM were randomly given questionnaires about the agreeability of Islamic currency in today’s developed economy and its usefulness to prevent inflation. The survey showed that Islamic currency model (dinar and dirham) would be able to control inflation and instabilities of prices by having 100 percent of gold and silver reserves for every single amount of money circulating in the economy. Moreover, it is emphasized that Islamic governments should implement this model to overcome the problems people are facing by inflation which diminishes their purchasing power of saved money and their uncertainty in future investments.
Keyword: Fiat money, Islamic currency, perception, inflation, economic growth.

Islamic currency: The perception of IIUM economic students on Islamic currency usage to prevent the inflation in a country 1. Introduction
Many things caused the current economic instabilities and crisis which have direct effect on the well-being of the people in the society. People can work to earn income and improve their lives through all difficulties in the economic conditions. People do hard job and try their best to earn…...

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