Cizakca, Murat (2010): The case against the Islamic gold dinar.
Download (150kB) | Preview
The claims that the Islamic gold dinar will avoid inflation and other ills of current economic crises are examined by studying how coinage systems actually functioned in history.The article shows that not only these claims are baseless but also that coinage would increase the prevailing interest rate in an economy - hardly an Islamic position. It is argued that a gold or silver based dinar would be harmful for Islamic societies and attempts to introduce them should therefore be prohibited.
|Item Type:||MPRA Paper|
|Original Title:||The case against the Islamic gold dinar|
|English Title:||The case against the Islamic gold dinar|
|Keywords:||Islamic gold dinar, interest rate, Gresham's Law, barter, commodity money, money as a medium of exchange, fiat money|
|Subjects:||Z - Other Special Topics > Z1 - Cultural Economics; Economic Sociology; Economic Anthropology > Z12 - Religion
O - Economic Development, Technological Change, and Growth > O5 - Economywide Country Studies > O53 - Asia including Middle East
|Depositing User:||Murat Cizakca|
|Date Deposited:||12. Nov 2010 08:59|
|Last Modified:||12. Feb 2013 23:42|
Braudel, Fernand P. and F. S. Spooner, “Currencies, Precious Metals and Money Markets”, in E. E. Rich and C. H. Wilson (eds.), The Cambridge Economic History of Europe, vol. IV, (Cambridge: CUP, 1967), pp. 474-479.
Chapra, Muhammad Umer “Monetary Management in an Islamic Economy”, Islamic Economic Studies, 1996, vol. 4, No. 1.
Çizakça, Murat. "Price History and the Bursa Silk Industry: A Study in Ottoman Industrial Decline", Journal of Economic History, 1980, No.3, pp.533-551.
Çizakça, Murat. “Gharar in Public Finance and the Origıns of Sukuk - 1500-1800”, submitted at the “Symposium on Sukuk Financial Instruments” jointly sponsored by the Graduate School of Business, University Putra Malaysia and the Dubai International Financial Centre, convened on may 3rd, 2010 in Dubai at the DIFC conference centre.
Dawud: Book 10, Kitab al-Manasik wa’l-Hajj, hadith 1730.
Haneef, Muhammad Aslam and Emad Rafiq Barakat, “Must Money be Limited to Only Gold and Silver?”, Journal of King Abdulaziz University: Islamic Economics, 2006, vol. 19, no. 1, pp. 21-34.
Hasan, Zubair. “Ensuring Exchange Rate Stability: Is Return to Gold (Dinar) Possible?”, MPRA Paper No. 8134, posted April 8th, 2008.
Hookway, James. “Malaysians Go for Gold as Alternative Currency”, The Wall Street Journal, September 7, 2010, p. 10.
Macdonald, James. A Free Nation Deep in Debt, The Financial Roots of Democracy, (Princeton: University of Princeton Press, 2006).
Malik, Book 31 (Business Transactions), hadith 31.12.21
Martinez, Manuel Sanchez. “Dette publique, autorites princieres et villes dans les pays de la Couronne d’Aragon”, in M. Boone, et. all (Eds.), Urban Public Debts (Turnhout: Brepols, 2003).
Meera, Ahamed Kameel Mydin, The Islamic Gold Dinar (Kuala Lumpur: Pelanduk, 2002).
Muslim, Book 10 (Book of Transactions), Hadith 3861.
Pamuk, Şevket. A Monetary History of the Ottoman Empire (Cambridge: Cambridge University Press, 2000).
Pense, Alan. “The Decline and Fall of the Roman Denarius”, Materials Characterization, vol. 29, no. 2, 1992.
Vollmer, Uwe and Ralf Bebenroth, “Policy Reactions to the Financial Crisis in Japan: Lessons from the 1990’s”, Discussion Paper Series RIEB, Kobe University, DP2010-16, May 7, 2010. Also see; http://www.reuters.com/article/idUSN3017278720100730 retrieved on Oct. 15th, 2010.
Manuel Sanchez Martinez, “Dette publique, autorites princieres et villes dans les pays de la Couronne d’Aragon”, in M. Boone, et. all (Eds.), Urban Public Debts (Turnhout: Brepols, 2003), p. 37.