"Islamic Finance Researches" (IFR)

A Jurisprudential and Economic Analysis of the Foundations, Principles and General Monetary System of Islamic Economics

Document Type : Science - Research (Islamic Fiqh Rules)

Authors

1 Associate Professor, Department of Political Economy, Faculty of Islamic Studies and Economics, Imam Sadiq University, Tehran, Iran

2  Ph.D. student of Economics, Imam Sadiq University, Tehran, Iran

3  Ph.D. student of Private Law, Science and Research Branch, Islamic Azad University, Tehran, Iran

Abstract

Throughout the history of economics there have theoretically been three fundamental and interrelated questions in the field of money: 1) What is money 2) What is the source of money or how does it enter society? 3) How does money gain or lose value? In conventional economics, the two branches of monetary school, namely metallism and chartalism have tried to answer these questions using their theoretical foundations. In this article, we have tried to answer the questions from the perspective of the principles and general framework of the Islamic monetary system. For this purpose, first, with the help of valid jurisprudential methods including transactional jurisprudence and systemic jurisprudence based on the framework of Islamic economics, the principles and general framework of the Islamic monetary system are explained and then the above questions are answered.
   The research results show that in the Islamic monetary system, firstly, anything that can fulfill the functions of money and wins people’s acceptance can play the role of money, but in case of deviations of the instances of money from Sharia, the Islamic government is bound to revoke its approval. Secondly, concerning the value of money, it should be said that money must either have intrinsic value or some valuable extrinsic equivalent in order to comply with the principles and foundations of the monetary system and be used in transaction.

Keywords

Alam, A, R. (1383). Foundations of Political Science (12th edition), Tehran: Ney (In Persian).
Allama Halli, H, I, Y, (1363). The Essential Substance in the Explanation of the Logic of Abstraction. Qom, Islamic Library (In Persian).
Ansari, S, M. (1411 AH). The Gains (first edition). Qom: Dar al-Zakhair Publications (In Persian).
Amid Zanjani, A, A. (1386). Rules of Political Jurisprudence Expediency (First Edition). Tehran: Amir Kabir (In Persian).
Ayuzlu, H. (1387). Principles and Foundations of the Monetary System in Islamic Economics. Islamic Economics Quarterly, 8 (29), 35-62 (In Persian).
Ayuzlu, H (1390). Methodology of Islamic Economics (University Booklet). Tehran: Imam Sadiq University (In Persian).
Ayuzlu, H; & Karimirizi, M. (1397). Principles and Strategies of Islamic Banking in the Framework of Islamic Economic System, Islamic Economics Quarterly, 18 (71), 5-35 (In Persian).
Churchman, C, W. (1369). Theory of Systems (Rashid Aslani, Translator) (Second Edition). Tehran: Government Management Center (In Persian).
Clini, A, J. (1407 AH). Al-Kafi (Volume 17, Edition 1). Qom: Islamic Library (In Persian).
Droudian, H. (1394). Investigating the Nature of Money and the Effects of Bank Money Creation in Conventional Economics: An Assessment from the Perspective of Islamic Economics (PhD Thesis). Tehran University, Tehran, Iran (In Persian).
Duran, D (1370). Theory of Systems (Mohammad Yemeni, Translator). Tehran: Islamic Revolution Education (In Persian).
Fahmi Aziz, A, R. (1965 A.H). Fajr Al-Arabiya Coin (1st Edition). Egypt: Dar al-Kitab Press (In Persian).
Gregory, P. R., & Stuart, R. C. (1999). Comparative Economic Systems. Houghton Mifflin.
Goodhart, C. (1984). Monetary Policy in Theory and Practice.
Hakimi, M, R. (1368). Al Hayat. Tehran: Islamic Culture Publishing Office (In Persian).
Hakim, Seyyed Mohsen (1418 AH) Nahj al-Fiqh (first edition). Qom: 22 Bahman (In Persian).
Harani, I, S. (1394). Tohef Oghol. Qom: Insightful.
Hosseini Dolatabadi, S, M. (1394). Money Creation Arrangements from the Perspective of Conventional Economics and Islamic Economics with Emphasis on Legal Reserve Rate (Doctoral Dissertation). Tehran University, Tehran, Iran (In Persian).
Ibn Manzur, M, I, M. (1108 AH). Arabic Language (First Edition). Beirut: Dar Al-Ahya Al-Tarath Al-Arabi (In Persian).
Ibn Sina, H, B, A. (1403 AH). Signs and Warnings (Vol. I). Qom, Book Publishing Office (In Persian).
Ingham, G. (2004). The Nature of Money. Economic Sociology: European Electronic Newsletter, 5(2), 18-28.
Jakab, Z., & Kumhof, M. (2015). Banks are not Intermediaries of Loanable Funds–and why this Matters.
Knowledge, Mohammad Hadi (1374). Religious Rationalism and Political Development. Journal of Criticism and Opinion, 1 (3 and 4), 244-249 (In Persian).
Mamqani, M, H. (1316). Ghayamal Fi Shrhe Ketab Almakaseb (First Edition) (In Persian).
Majlisi, M, B. (1404 A.H). Baharol Anvar. Lebanon: Al-Wafa Institute Beirut (In Persian).
Motahari, M. (1364). Overview of the Basics of Islamic Economics (1st edition). Tehran: Hekmat (In Persian).
Motahari, M. (2010) Collection of Works (Volume 5, Edition 1). Qom: Sadra (In Persian).
Madani, D. (1386). Introduction to theories of Organization and Management. Tehran: Payam-e-Noor University (In Persian).
Malek Afzali Ardakani, M; Haeri, M, H; Fakhlai, M, T; & Aristotle, M, J. (1391). The Concept of the System and its Application in Jurisprudence and Principles. Bi-Quarterly Journal of Islamic Studies in Jurisprudence and Principles, 44 (88), 125-140 (In Persian).
Maroof, H. (1382 AH). Biography of the Twelve Imams (Vol. 3). Najaf: Al-Haydari Library (In Persian).
Montazeri, H, A. (1408 AH). Studies in the Jurisprudence and Jurisprudence of the Islamic State, Second Edition, Publications of the World Center for Islamic Studies. Qom: Mustafa International Society (In Persian).
Mufid, M, I. (1413 A.H). Alamali. Qom: Sheikh Mofid Congress (In Persian).
Mughniyeh, M, J. (1352). The Science of the Principles of Jurisprudence in the New Reward. Qom: Islamic Library (In Persian).
Mousavi Khomeini, S, R. (1421 AH). Sale (first edition). Tehran: Imam Khomeini Publishing House (In Persian).
Mousavian, S, A; & Bahari Gharamaleki, H. (1391). Jurisprudential Principles of Money and Capital Markets (Vol. I). Tehran: Imam Sadiq University (In Persian).
Mousavian, S, A; & Meysamy, H. (1396). Islamic Banking Theoretical Foundations - Scientific Experiences (First Edition). Tehran: Monetary and Banking Research Institute of the Central Bank of the Islamic Republic of Iran (In Persian).
Naini, M, H. (1373). Meniya Altaleb Fi Hashiyat Almaksab (First Edition). Tehran: Mohammadi Library (In Persian).
Nazarpour, M, N; Mousavian, S, A; & Khazaei, A. (1398). Islamic Banking. Tehran: Organization for the Study and Compilation of University Books in Islamic and Humanities (Position) (In Persian).
Razi, M, I, M, Q. (1363). Writing the Logical Rules: Explanation of the Solar Message, for the Religion of Umar bin Ali Katabi Qazvini. Qom: Offset (In Persian).
Sobhani, H. (1392). Booklet of Islamic Economics for PhD in Economics. Tehran: Faculty of Economics, Tehran University (In Persian).
Sobhani, H; & Droudian, H. (2015). Assessing the Justification of Money Creation by the Banking System in the Islamic Banking System. Islamic Economics Quarterly, 16 (64), 31-54 (In Persian).
Tabatabai, M, H. (1393). Balance in the Interpretation of the Qur'an (Volume 19, first edition). Beirut: Press Institute for Publications (In Persian).
Taftazani, M, I, U (Bi,ta). Tahdhib al-Manteq, in Addition to the Margin on Tahdhib al-Manteq for Taftazani, by Mullah Abdullah bin Hussein Yazdi. Qom: Islamic Publishing Foundation (In Persian).
Tamimi Amadi, A, W, B, M (1410 AH). Garar Al Hakam (Volume one, second edition) (Rajaei, Seyyed Mahdi, Corrector). Qom: Dar al-Kitab al-Islamiya.
Tavassoli, M, I. (1391). Analysis of the Nature of Money. Islamic Economics Quarterly, 12 (48), 107-130 (In Persian).
Tusi, M, I, M, N, al-Din (1361). The Basis of the Quotation. Tehran, Modares Razavi (In Persian).
Yousefi, A, A. (1377). The Nature of Money and its Jurisprudential and Economic Strategies (First Edition). Tehran: Institute of Islamic Culture and Thought (In Persian).
Volume 10, Issue 2 - Serial Number 20
May 2021
Pages 445-494
  • Receive Date: 20 January 2021
  • Revise Date: 07 July 2021
  • Accept Date: 15 September 2021