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Re-Introducing gold : an Islamic finance approach
Author
Source
ISRA International Journal of Islamic Finance
Issue
Vol. 5, Issue 2 (31 Dec. 2013), pp.9-51, 43 p.
Publisher
International Shari'ah Research Academy for Islamic Finance
Publication Date
2013-12-31
Country of Publication
Malaysia
No. of Pages
43
Main Subjects
Abstract EN
This paper presents a practical strategy for implementing the gold standard, from an Islamic perspective, in an economy that wishes to return to the gold standard.
The strategy seeks to introduce Islamic finance as prerequisite for a lasting gold standard.
Islamic finance shuns interest-based debt contracts; establishes 100-percent reserve money; and promotes a risk-sharing equity-based investment banking system.
Monetized fiscal deficits, labor unions and vested-interest financial groups that require inflation as a means for appropriating resources have to be precluded.
The paper argues that a return to the gold standard is a political decision and is technically simple to implement.
There are no conditions on the amount of gold required for an economy to operate a gold standard.
The country has to assimilate foreign exchange to gold; it has to lift all restrictions on gold trade; stabilize its exchange rate in relation to gold; allow the circulation of gold coins defined in terms of weights and fineness; and secure a 100-percent gold reserve for further currency emission.
American Psychological Association (APA)
Krichene, Nur al-Din. 2013. Re-Introducing gold : an Islamic finance approach. ISRA International Journal of Islamic Finance،Vol. 5, no. 2, pp.9-51.
https://search.emarefa.net/detail/BIM-717828
Modern Language Association (MLA)
Krichene, Nur al-Din. Re-Introducing gold : an Islamic finance approach. ISRA International Journal of Islamic Finance Vol. 5, no. 2 (Dec. 2013), pp.9-51.
https://search.emarefa.net/detail/BIM-717828
American Medical Association (AMA)
Krichene, Nur al-Din. Re-Introducing gold : an Islamic finance approach. ISRA International Journal of Islamic Finance. 2013. Vol. 5, no. 2, pp.9-51.
https://search.emarefa.net/detail/BIM-717828
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references : p. 51
Record ID
BIM-717828