Scintific Journal of "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

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Scintific Journal of
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